Oil equipment, services and distribution stocks were on the rise today, tracking oil prices higher.
Brent crude was up 0.47% at $117.75 in mid-afternoon trade on the IntercontinentalExchange on news that Greek leaders have finally reached an agreement over austerity measures. While many say that the markets had priced in a deal for some time now, it has undoubtedly come as a relief and a catalyst to oil prices.
According to a statement from Prime Minister Lucas Papademos's office, "the government's discussions with the troika were concluded successfully this morning on the issue which had remained open for further elaboration. The political leaders have agreed on the result of these discussions."
Prices were given an extra lift a bigger-than-expected fall in US jobless claims. Initial unemployment claims fell by 15,000 to 358,000 last week, while consensus estimates were for a figure of 370,000.
Petrofac, AMEC, Wood Group, Lamprell and KBC Advanced Technologies were among the best performers in the sector today.
A bullish statement by oil and gas giant BG Group on the outlook for the liquefied natural gas (LNG) market may have also done its bit to boost sentiment in the oil services sector.
Top performing sectors so far today
Oil Equipment, Services & Distribution 24,929.47 +1.83%
Tempus yesterday pointed out that one of his picks for 2013, Lamprell, was up 53 per cent so far and suggested investors might take some profits. A second, Thomas Cook, is up 78 per cent so far, after yesterday's update. For him the best option for nervous investors may be that 78 per cent in five weeks might be regarded as enough. He is not sure, though, that Thomas Cook shares might not have farther to run, even if some sort of equity issue looks inevitable. [8 Feb '13]
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