Globex WTI crude futures fell another 1% this morning and were last changing hands at around $75.60. The ‘black gold’ has endured quite a bearish week despite a weakened dollar and an apparent improvement in Chinese manufacturing activity. Generally analysts and commentators have become increasingly concerned with US oversupply and a pessimistic demand outlook.
Many investors are eyeing the potential fallout from this afternoon’s report on November’s non-farm payrolls data the US. Last night on Wall Street, equities sold off as the non-farms came into focus, both the Dow and the S&P500 lost around 1% at the end of Thursday’s session.
Economists expect the report to show that the US economy lost a further 125,000 jobs in November. It is anticipated that the unemployment rate will be unmoved at the 26 year high of 10.2%.
Some analysts are pointing at crude prices below $75, should this afternoon’s report contain any further bearish news after the US oil market has suffered a number of blows this week as inventory reports disappointed, leading to a fairly persistent sell-off. Crude oil futures are set to finish the week lower.
In London, oil and gas producers have been generally mixed. Among the majors, Scottish headquartered Cairn Energy (LSE: CNE) rose the highest, climbing over 1.5%, BP (LSE: BP.) and Tullow Oil (LSE: TLW) both edged up half a percent. Moving in the other direction was major gas producer BG Group (LSE: BG) which fell almost 1%, while Royal Dutch Shell (LSE: RDSB) eased a quarter of a percent lower and Petrofac (LSE: PFC) was unchanged.
In the FTSE250, JKX Oil and Gas (LSE: JKX) advanced more than 2%, followed by Dragon Oil (LSE: DGO) and Soco International (LSE: SIA) both gained three quarters of a percent. Premier oil (LSE: PMO) and Dana Petroleum (LSE: DNX) were relatively unmoved, meanwhile Kurdistan operating Heritage Oil (LSE: HOIL) dropped over 1% lower.
On the AIM market, junior explorers and developers Tower Resources (AIM: TRP) and Sterling Energy (AIM: SEY) were among the top performers, climbing 7% and 4.5% respectively. They were followed by Pantheon Resources (AIM: PNR) and Gold Oil (AIM: GOO) which both rose more than 3%.
In the opposite direction Sound Oil (AIM: SOU) collapsed, falling around 46%. Nautical Petroleum (AIM: NPE) and Nostra Terra (AIM: NTOG) both slipped more than 4%. Also trading in the red were Enegi Oil (AIM: ENEG), Ascent Resources (AIM: AST), Roxi Petroleum (AIM: RXP) and Regal Petroleum (AIM: RPT).