Oil prices slide ahead of crude inventories data from Department of Energy, energy stocks mixed

Oil prices were slightly lower ahead of today’s key oil inventories update from the US Department of Energy (DoE), which is expected to set the direction for crude prices for the rest of the week. The American Petroleum Institute (API) said on Tuesday that cruse oil stocks declined 1.8 million barrels in the previous week and distillate inventories decreased by 3.4 million barrels, which, however, made little impact on the commodity market.
According to a poll by the Dow Jones Newswires, today’s update from the DoE will show a 1.9 million increase following last week’s unexpected rise of 3.9 million barrels, which heavily contributed to the downward movement in oil prices.
Crude was further subdued by yesterday’s economic updates that came out in the US and China. Bank of America (NYSE: BAC) and Morgan Stanley (NYSE: MS) released quarterly reports that missed market expectations, while the Chinese government has reportedly told banks to stop lending until the end of the month in its latest move to tighten monetary policy after upping the reserve requirements for banks by 0.5% to 15% of their deposits following an increase of bank-reserve ratios and interbank rates, both of which occurred earlier this month, to curb economic activity and prevent the economy from overheating.
The policy moves in China and the so far disappointing corporate reporting season in the US have boosted the US Dollar, helping it to a 2% climb against a basket of six currencies to make oil more expensive for holders of other currencies to weaken the demand and weigh on the prices.
March Brent Crude inched lower to US$76.19/barrel, while US light, sweet crude was at US$77.70/barrel.
Major oil and gas stocks rose today, recovering from Wednesday’s falls. Tullow Oil (LSE: TLW) was in the lead with a 1% gain, while fellow FTSE 100 constituent BG Group (LSE: BG) rose marginally, as did supermajors BP (LSE: BP) and Shell (LSE: RDSB).
Cairn Energy (LSE: CNE) went against the tide, sliding 1.1%.
Services companies Amec (LSE: AMEC) and Petrofac (LSE: PFC) also posted small losses.
Midcaps were mixed. Heritage Oil (LSE: HOIL) was the top performer with a 1.4% climb. Dana Petroleum (SLE: DNX) and JKX Oil & Gas (LSE: JKX) rose marginally, while Premier Oil (LSE: PMO) and Soco International (LSE: SIA) were flat.
Melrose Resources (LSE: MRS), Salamander Energy (LSE: SMDR) and Dragon Oil (LSE: DGO) headed in the opposite direction, posting losses of less than 1%.
Wood Group (LSE: WG) did well, tacking on 1.4%, while fellow services company Wellstream Holdings (LSE: WSM) was unmoved.
Europe focused oil and gas developer Ascent Resources (AIM: AST) was the top performer among the juniors with a 7% gain.
Africa focused energy company Dominion Petroleum (AIM: DPL) was in correction, shedding almost 4%, while Western Europe operating oil and gas company Northern Petroleum (AIM: NOP) and Ukraine focused gas producer, Regal Petroleum (AIM: RPT) were down 3%.  http://www.proactiveinvestors.co.uk/companies/news/12468/oil-prices-slide-ahead-of-crude-inventories-data-from-department-of-energy-energy-stocks-mixed-12468.html