Crude retreats after reaching $83 on demand worries, energy stocks mixed in London

Oil prices retreated after rising above US$83/barrel after a colder than expected winter drove up the demand for heating oil, helping crude prices to 14 month highs. The prices were then pressured by demand concerns for the next year amid unclear recovery prospects along with an update from the US Department of Energy, which said that crude inventories rose 1.3 million barrels last week, while a 1.6 million decrease was expected following five weeks of declines.
Meanwhile, gas inventories rose by more than expected and heating oil supplies declined less than expected to further weaken the crude.
February Brent Crude slid to US$81.22/barrel, while US light, sweet crude was down to US$82.52/barrel after reaching US$83.10/barrel.
Oil and gas companies didn’t show much movement in the morning. BG Group (LSE: BG) led the sector in the FTSE 100 with a gain of nearly 2%. BP (LSE: BP) posted a marginal gain, while fellow supermajor Shell (LSE: RDSB) remained flat, as did Cairn Energy (LSE: CNE).
Tullow Oil (LSE: TLW) lost slightly less than 1%.
Petrofac (LSE: PFC) declined marginally, while fellow services company Amec (LSE: AMEC) was little moved.
Heritage Oil (LSE: HOIL) was the top performer among the midcap energy companies with a 5% advance. Premier Oil (LSE: PMO) and JKX Oil & Gas (LSE: JKX) followed with gains of 3% and 2% respectively. Dana Petroleum (LSE: DNX) and Dragon Oil (LSE: DGO) both added 1%.
Sector peers Melrose Resources (LSE: MRS), Salamaner Energy (LSE: SMDR) and Soco International (LSE: SIA) held steady.
Service companies Wood Group (LSE: WG) and Wellstream Holdings (LSE: WSM) posted insignificant gains.
Kazakhstan operating Max Petroleum (LSE: MXP) was the top performer among the juniors with a 7.5% climb. Energy investor Xtract Energy PLC (AIM: XTR) and Iraq and Algeria operating Gulf Keystone Petroleum (AIM: GKP) improved 6% and % respectively.
Oil and gas company with assets in Iraq, Syria and Gulf of Mexico Gulfsands Petroleum (AIM: GPX) tacked on 3.5%.
Europe focused oil and gas developer Ascent Resources (AIM: AST), North America focused oil & gas junior Pantheon Resources (AIM: PANR) and Ukraine focused gas producer, Regal Petroleum (AIM: RPT) headed in the opposite direction, shedding 6.7%, 5% and 3% respectively.  http://www.proactiveinvestors.co.uk/companies/news/11929/crude-retreats-after-reaching-83-on-demand-worries-energy-stocks-mixed-in-london-11929.html