Oil prices surge ahead of cartel meeting

Oil prices surged at the start of the week ahead of a key meeting of the Organisation of the Petroleum Exporting Countries (Opec).

Towards the end of the session, Brent crude was up 2% to $74.452.

The price rise came after the news that Venezuela has started shutting down oil production, and after China included energy imports in its list of tariffs against the US.

However, Opec members are set to meet on Thursday, setting the stage for more volatility.

Ken Odeluga, market analyst at City Index, said: “China’s surprise inclusion of US energy imports among possible new tariffs also trains the spotlight on oil. The decision was out of the blue as energy products were not on a list of potential duties China previously announced.

“Hence the move triggers fresh price uncertainty, just as Opec and other producing countries are expected to agree an end to their 17-month production cut this week.”

Markets across Europe were off to a slow start for the week, with the FTSE 100 edging down 0.03% or 2.58 points to 7631.33 points.

The Dax in Germany was hit due to fears over the future of Angela Merkel’s government. The index fell 1.36% or 176.44 points to 12834.

In currency markets, the pound was flat against the euro, and fell 0.26% against the US dollar to 1.324.