Citywire for Financial Professionals
Stay connected:

View the article online at http://citywire.co.uk/money/article/a876349

FTSE rallies as US cold snap buoys oil price

FTSE 100 reverses losses as oil price rallies on spike in US demand prompted by cold snap.

 
FTSE rallies as US cold snap buoys oil price

Update: The FTSE 100 has reversed losses and closed in on the 6,000 mark as a rally in oil prices sparked by the US cold snap buoyed investors.

The UK blue-chip index rose 50 points, or 0.8%, to 5,961, reversing losses made in the morning's trading that saw the FTSE fall to a day low of 5,873.

The jump came as the oil price rallied above the $32 mark, up 0.8% on the day, on US data showing a jump in demand for products such as heating oil following the cold snap in the country. That served to quell fears sparked by earlier data showing a rise in US crude inventories.

'The price of oil whipped around from gains to losses and then back to gains which were sustained despite the release of a much bigger than expected inventories build,' said Jasper Lawler, market analyst at CMC Markets.

'It's another piece of evidence that short-sellers are abandoning ship, especially while the dollar slides before the Fed meeting.'

Oil's rise helped to lift the major energy stocks out of the red. BG (BG) rose 2.7% to £10.22, Shell (RDSb) was up 2% at £14.49 and BP (BP) traded 3p higher at 359.4p.

Shares in BG were also given a fillip by Shell shareholders voting to approve its takeover, as had been expected.

FTSE dips as oil suffers fresh falls

(11:07) The FTSE 100 has fallen after the oil price suffered another drop following a larger-than-expected build-up in US supplies.

The UK blue-chip index fell 31 points, or 0.5%, to 5,880, as the price of Brent crude fell from a high of $32.68 overnight to $31.11, down 2.2% on the day. The falls came as US crude stocks rose by 11.4 million barrels last week, well ahead of analyst expectations of a 3.3 million rise.

Shell (RDSb) fell 2% to £13.92 on the news, while BP (BP) was down 1.7% at 350.6p and BG (BG) dropped 1.1% to 983.7p.

Miners also fell, as copper prices dropped on persistent fears over economic growth in China. Anglo American (AAL) was down 4.7% at 241.5p, Antofagasta (ANTO) fell 3.5% to 364.9p and BHP Billiton (BLT) was down 3.1% at 645.2p.

Royal Bank of Scotland (RBS) was also among the fallers, down 2.6% at 254.1p after the bank was forced to write off £2.5 billion from its fourth quarter profits to cover the cost of mis-selling allegations.

Sage (SGE) bucked the losses to post a 5.3% rise to 597.5p after the software business posted a 6.6% rise in revenue for the first three months of its financial year.

Shares in Aberdeen Asset Management (ADN) also edged higher, up 1% at 235p, after the investment group reported a 2.4% rise in assets under management.

On the FTSE 250, which dropped 0.3%, Just Eat (JE) was a heavy faller, down 7.9% to 387.2p after analysts at Morgan Stanley cut their rating on the takeaway website to 'underweight' from 'equal weight'.

RPS Group (RPS) was meanwhile the biggest 'small cap' faller, down 11.9% at 183.5p after the consultancy group announced it could be forced to sell some of its energy business due to the tumbling oil price.

1 comment so far. Why not have your say?

croppp

Feb 04, 2016 at 20:07

Fuel prices now are around 1.2£ a litre and stable for the time being they still need to fall more america seems to be carried by the uk .with the uk taking the brunt of price increases so the states can have nearly free fuel .oil price inflation started up under the labour goverment tony blair got the economy hyper active. everwhere you looked things looked rosy high employement within a bubble throw the dice and you could win every time the economy looked as though it was frozen in a time warp oil was manufacturing highest need so oil prices had to rise .then about two years before gorden brown came into office .THE BUBBLE STARTED TO BURST. leaving him, to carry the can when he took over as prime minister.you know the story from there unemployment .the high prices and rents where ingrained within the ecomomy .which caused problems that ramain today .so the lower oil price can help the country .and generally help people to manage getting around .

report this

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

Sponsored Video: The sterling slump: what’s next?


After Boris announced he was backing Brexit, sterling suffered its biggest slump in six years. Our Market Mavens discuss. Follow the Market Mavens LinkedIn page for weekly videos, in which our panel of industry experts share their views on financial news

The Citywire guide to investment trusts

In association with Aberdeen Asset Management

More about this:

Look up the shares

  • Royal Dutch Shell PLC (RDSb.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • BP PLC (BP.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • BG Group PLC (BG.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Anglo American PLC (AAL.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Antofagasta PLC (ANTO.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • BHP Billiton PLC (BLT.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Royal Bank of Scotland Group PLC (RBS.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Sage Group PLC (SGE.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Aberdeen Asset Management PLC (ADN.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Just Eat PLC (JE.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • RPS Group PLC (RPS.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

Archive

Today's articles

Tools from Citywire Money

From the Forums

+ Start a new discussion

Weekly email from The Lolly

Get simple, easy ways to make more from your money. Just enter your email address below

An error occured while subscribing your email. Please try again later.

Thank you for registering for your weekly newsletter from The Lolly.

Keep an eye out for us in your inbox, and please add noreply@emails.citywire.co.uk to your safe senders list so we don't get junked.

Read more...

FTSE narrows losses but pound plunges on 'Brexit'

by Daniel Grote on Jun 24, 2016 at 16:55

Sorry, this link is not
quite ready yet