Crude reaches $83 on API inventories report, EIA data eyed

Oil prices rose as while US crude stockpiles continued growing, the increase reported by the American Petroleum Institute (API) yesterday turned out to be smaller than expected.
According to yesterday’s report from the API, oil stockpiles added just 421,000 barrels last week, while distillates, which include diesel and heating oil, fell by 1 million barrels and gasoline stocks shed 946,000 barrels.
A more closely watched report from Energy Information Administration (EIA) is due out today.
Crude prices also benefitted from a weaker US dollar, which declined against the euro on a successful bond issue by Greece to raise another €5 billion, and terrorist attacks that hit major oil and gas producer Russia.
On Monday, OPEC (Organisation of Petroleum Exporting Countries) said that oil prices could stay within the current range of US$70-80/barrel for the next ten years.
Brent Crude for May delivery improved to US$82.32/barrel in London, while US light, sweet crude advanced to US$83.51/barrel on the New York Mercantile Exchange (NYMEX).
Blue chip oil and gas producers didn’t show much movement today. Supermajors BP (LSE: BP) and Shell (LSE: RDSB) posted small losses, while Tullow Oil (LSE: TLW) was flat and other FTSE 100 constituents BG Group (LSE: BG) and Cairn Energy (LSE: CNE) added less than 1%.
Oil and gas engineering firms headed in different directions as while Amec (LSE: AMEC) added nearly 1%, Petrofac (LSE: PFC) posted a small loss.
Most midcaps were in decline. Melrose Resources (LSE: MRS) and Dana Petroleum (LSE: DNX) were at the bottom of the pile, shedding 2% and 1.5% respectively. JKX Oil & Gas (LSE: JKX), Premier Oil (LSE: PMO) and Soco International (LSE: SIA) posted small losses. Heritage Oil (LSE: HOIL) and Salamander Energy (LSE: SMDR) were flat.
Wood Group (LSE: WG) lost nearly 1%, while another services company Wellstream Holdings (LSE: WSM) added 1%.
Peru, Colombia and Cuba operating oil and gas explorer and producer Gold Oil (LSE: GOO), Atlantic Canada operating oil and gas group Enegi Oil (AIM: ENEG) and North Sea explorers Xcite Energy (AIM: XEL) led the juniors with gains of 9%, 6.5% and 4.5% respectively.

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