Oil slips on Opec’s renewed glut warning

London Stock ExchangeTue close: Oil prices retreated after Opec said global demand is lower than expected. The producers’ comments clipped 2.6% off Brent Crude, down to $38.51 a barrel, while West Texas Intermediate fell 2.9% to $36.12.

Investors were also unimpressed by US economic data. Retail sales fell 0.1% month-on-month to $447.3bn in February, the first drop since September.

The figure will probably persuade the Federal Reserve to hold off raising interest rates when its policy meeting takes place on Wednesday. There is no prospect of change when the Bank of England’s MPC meets on Thursday.

In company news, miners were again on the back foot, while Royal Bank of Scotland rallied after Goldman Sachs issued a ‘buy’ note, upgrading its stance from ‘neutral’. The bank is axing 448 investment banking jobs as part of a radical restructuring.

Legal & General declined after reporting a capital position below some analysts’ expectations in its full year results.

Wood Group dropped after being downgraded by a broker on concerns the stock is overvalued.

The FTSE 100 fell 0.51% to 6,142.96.

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