Tumbling oil price drags down FTSE

London’s blue-chip index was dragged slightly lower yesterday by the tumbling price of oil as investors fret that supply could outpace global demand.

The FTSE 100 index closed 7.46 points, or 0.1%, lower at 6,952.86, while a barrel of Brent crude was trading down 6.2% at 58.66 US dollars (£45.76).

Oil giants BP and Royal Dutch Shell make up about 17% of the FTSE 100, so when the price of oil declines the index falls.

France’s Cac was up 0.2% while Germany’s Dax rose 0.5%.

Meanwhile, the pound was weaker due to a stronger dollar and ongoing uncertainty surrounding the UK’s departure form the European Union.

Prime Minister Theresa May has reached a Brexit deal with the EU but is struggling to convince sceptical MPs to back it.

The pound was down 0.6% against the US dollar to 1.280 US dollars but was up 0.1% versus the euro at 1.129.

James Klempster, from Momentum Global Investment Management, said it seems likely that the leaders of the 27 EU countries will agree Mrs May’s deal, but the risk lies when it is put to Parliament “as it is difficult to see any MPs other than ardent Mayphiles viewing it positively”.

The biggest risers on the FTSE 100 were Ocado up 44.40p, or 5.9%, to 794.4p, easyJet up 47p, or 4.1%, to 1,207p, Royal Mail up 12.50p, or 3.8%, to 340p, and British Land up 17.40p, or 3%, to 606p.

The biggest fallers on the FTSE 100 were Fresnillo down 56p, or 7%, to 746.4p, Wood Group down 37p, or 5.9%, to 587.6p, Anglo American down 74.40p, or 4.5%, to 1,568.8p, and Evraz down 19.70p, or 4%, to 471.7p.