Further falls as concerns remain over China
Mon close: London closed lower as oil prices fell further and concerns over China’s economic slowdown continued.
Brent crude sank 4.2% to $32.18 per barrel and West Texas Intermediate dropped 3.7% to $31.95 per barrel, the first time it has traded below $32 since 2003.
There were warnings that a depreciation in the Chinese yuan could send oil into the $20s, which would be in line with what appeared to be hugely pessimistic forecasts before Christmas.
Shares in Royal Dutch Shell was down 1.5%, while its target BG Group fell 2.4%, also because of Friday’s announcement from Standard Life Investments that it will vote against their £47bn tie-up.
BAE Systems gained on broker predictions that 2016 will be a big year for defence stocks.
Savills was higher after the real estate firm said underlying full year results will be ahead of previous expectations.
The FTSE 100 closed down 40.6 points at 5,871.8.