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Shell and BP boost FTSE as oil jumps on UK outage

Shell and BP boost FTSE as oil jumps on UK outage
 

Oil majors have led the FTSE 100 higher after the closure of a major UK pipeline helped lift the price of Brent crude above the $65 mark.

The UK blue-chip index rose 18 points, or 0.2%, to 7,471, with Shell (RDSb) and BP (BP) among the risers, up 1.2% at £24.41 and 1.3% higher at 505p respectively.

They were boosted by a 1.4% jump in the price of Brent cruse, to $65.62 a barrel, after the Forties pipeline, which carries North Sea oil across land, was closed following the discovery of a crack.

'The Forties pipeline system transports about 450,000 barrels a day of crude oil,' said Jason Gammel, analyst at Jefferies. 'Forties is one of the four components of the Brent pricing system, and if the duration of the outage is for several weeks it should put upward pressure on the Brent price.'

It was the same story on the FTSE 250, where oil stocks led the way, with Cairn Energy (CNE) up 3.4% at 222.9p and Tullow Oil (TLW) rising 3.3% to 196.5p.

Supermarkets Morrisons (MRW) and Sainsbury's (SBRY) were meanwhile rooted to the bottom of the FTSE 100, down 3.1% at 214.6p and 2.8% lower at 237.9p respectively, after data from market researchers Kantar Worldpanel showed both were lagging sales growth at Tesco (TSCO).

 

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