Crude reaches $80 on Total strike, Iran jitters

Movements in the currency markets also impacted crude oil prices today with a weaker US dollar sending US crude above US$80/barrel, while April Brent Crude was at US$78.36/barrel.
Crude was further lifted by the ongoing strike by Total’s (NYSE: TOT) refinery workers in protest against the shutdown of the company’s Dunkirk facility, which could spread to other refineries and potentially cause a supply shortage.
Meanwhile, situation in the OPEC’s (Organization of Petroleum Exporting Countries) second largest supplier Iran has also heated up after the country said it planned to build two new uranium enrichment facilities and the United States pledged to increase pressure on Iran to curb its nuclear program.
More bullish data came from China, which reported it has processed 29% more crude in the month of January than a year before, signalling an increase in demand form the world’s second largest energy consumer.
Crude got further support from global stock markets, which kept rising with the FTSE 100 posting further gains today in a bid to extend its winning streak to six sessions.
Blue chip oil and gas producers showed little movement today. Tullow Oil (LSE: TLW) was in the lead with a gain of nearly 1%. Cairn Energy (LSE: CNE) rose marginally, while BG Group (LSE: BG) and supermajors BP (LSE: BP) and Shell (LSE: RDSB) were flat.
Petrofac (LSE: PFC) climbed 1.2%, while fellow oil and gas engineering firm Amec (LSE: AMEC) posted a small decline.
Midcaps did slightly better. JKX Oil & Gas (LSE: JKX) and Premier Oil (LSE: PMO) were the top performers with gains of 1.5% and 1.3% respectively. Dana Petroleum (LSE: DNX) and Melrose Resources (LSE: MRS) added nearly 1%, while Dragon Oil (LSE: DGO) posted an insignificant gain.
Heritage Oil (LSE: HOIL) was flat, while Salamander Energy (LSE: SMDR) and Soco International (LSE: SIA) posted small losses.
Service companies were in demand with Wood Group (LSE: WG) and Wellstream Holdings (LSE: WSM) climbing 2.5% and 1.7% respectively.
Oil and gas company with assets in Iraq, Syria and Gulf of Mexico, Gulfsands Petroleum (AIM: GPX) topped the small caps with a 4.5% gain.
Peru, Colombia and Cuba operating oil and gas explorer and producer Gold Oil (LSE: GOO) headed in the opposite direction, sliding 6.2%, while Iraq and Algeria operating Gulf Keystone Petroleum (AIM: GKP) and Irish oil and gas exploration company Petroceltic International (AIM: PCI) dropped 4%.

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