Oil climbs as equities advanceReported by Proactive Investors on Tuesday, 29 May 2012 (on May 29, 2012)
Oil prices were on the rise today, lifted by speculation that China may opt for further stimulus to support economic growth and optimism about the upcoming elections in Greece.
Crude futures in New York and London got a boost from an early rally on Wall Street this afternoon.
US stocks surged in morning trade with the Dow Jones Industrial Average (DJIA) adding more than 100 points as investors had their first chance to respond to the results of the latest opinion polls in Greece.
The polls showed that pro-bailout parties have gained support and could secure enough votes in the upcoming election to form a government, which would reduce the likelihood of the country exiting the euro zone.
In other news in Europe, it was reported that Spain plans to issue sovereign debt to recapitalise the country’s fourth largest bank Bankia, which asked for €19 billion from the government on Friday.
A Reuters report said this option is favoured over injecting government notes directly into Bankia.
The reports pushed Spain’s borrowing costs higher, partly offsetting the positive impact of the Greek polls.
In addition, member of the governing council of the European Central Bank (ECB) Ewald Nowotny said there were no plans to restart of bond repurchase programme to bolster the European banking sector.
*US light, sweet crude* for July delivery, currently the most actively traded contract on the *New York Mercantile Exchange (NYMEX)*, rose 77 cents to US$91.63/barrel in morning trade in New York.
July *Brent crude* rose 54 cents to US$107.65/barrel on the *ICE Exchange* this afternoon.
Today’s top risers in the oil and gas sector were:
*Atrim Energy (LON:AEY)*, up 10.5 percent at 48 pence at midday
*Xtract Energy (LON:XTR)*, up 10.5 percent at 0.48 pence
*Caza Oil & Gas (LON:CAZA)*, up 9 percent at 6.95 pence
*Wessex Exploration (LON:WSX)*, up 9 percent at 8.3 pence
*Sirius Petroleum (LON:SRSP)*, up 6.5 percent at 4.12 pence
The top fallers were:
*Frontera Resources (LON:FRR)*, down 17.5 percent at 0.59 pence at midday
*President Petroleum (LON:PPC)*, down 10 percent at 25.58 pence
*Bayfield Energy (LON:BEH)*, down 5.5 percent at 25 pence
*Lochard Energy (LON:LHD)*, down 5 percent at 9 pence
*Enegi Oil (LON:ENEG)*, down 4.5 percent at 12.12 pence
Links: Full news story
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