Oil stocks buoyed by Opec report
Thur: Oil stocks ticked up even though Brent Crude turned downwards following yesterday’s rise in an otherwise quiet and truncated session.
Brent crude fell 0.34% to $37.23 per barrel, reversing an increase in morning trade. West Texas Intermediate, however, continued to climb with a 0.13% increase to $37.55 per barrel.
Oil majors rose after OPEC yesterday said it predicted that oil prices are set to recover, reaching $70 per barrel by 2020. The organisation also said it will cut its supply on rival production in the future.
Oil and gas stocks continued to be among the top risers today, including BP, BG Group, Ophir Energy, Nostrum Oil & Gas and Cairn Energy.
On the economic data front, the British Bankers’ Association said there had been a 25% rise in UK mortgage approvals in November to 76,295 compared to a year ago.
“This will fuel concern that consumers are borrowing more and saving less to finance their spending, which is likely a consequence of relatively high consumer confidence and extended low interest rates,” said Howard Archer, chief UK and European economist at IHS Global Insight.
The LSE will reopen on Tuesday after a bank holiday for Boxing Day on Monday.
Ted Baker continued to decline after receiving a downgrade from Jefferies to ‘hold’ from ‘buy’ and had its target price cut to 3200p from 3400p.
The FTSE 100 closed up 13.66 points at 6,254.64.