Oil prices declined today as investors remained cautious despite a batch of positive eocnomic data that was released in the US today.
The US Commerce Department said today that retail sales rose 0.8% in November, while the Labor Statistics Bureau reported that the producer price index climbed 0.8% during the month, twice the increase seen in October.
However, oil prices retreated despite the bullish reports and a weaker US dollar as investors remained cautious ahead of today’s statement from the Federal Reserve’s Open Markets Committee, which will report on the progress made since the announcement of the second round of quantitative easing (QE) in early November.
US light, sweet crude for January delivery, which is currently the most actively traded contract on the New York Mercantile Exchange (NYMEX), declined to US$87.92/barrel, while February crude dropped to US$88.51/barrel.
On the ICE Exchange, January Brent Crude retreated to US$90.86/barrel. Brent for February delivery last traded at US$91.09/barrel.
BP (LON:BP) advanced 3.5%, while fellow supermajor Shell (LON:RDSB) rose marginally, as did BG Group (LON:BG).
Tullow Oil (LON:TLW) declined 1%.
Cairn Energy (LON:CNE) posted a small loss, as did oil and gas engineering company Petrofac (LON:PFC). Peer Amec (LON:AMEC) added less than 1%.
Midcaps were mixed.
Premier Oil (LON:PMO) and Soco International (LON:SIA) advanced 1.6% and 1% respectively.
Melrose Resources (LON:MRS) was at the bottom of the pile with a 2.8% loss.
Heritage Oil (LON:HOIL), JKX Oil & Gas (LON:JKX) and Salamander Energy (LON:SMDR) declined marginally.
Service company Wood Group (LON:WG) climbed 2.6%.
EU operating oil and gas explorer and producer Northern Petroleum (LON:NOP) surged 6%.