Opec news helps market rise strongly

London’s blue-chip index was lifted as oilrelated stocks were helped by the outcome of a key meeting of the Organisation of Petroleum Exporting Countries (Opec).

Opec agreed to increase oil supply by one million barrels per day, although this will only amount to a real increase of 600,000 barrels per day because some members are already at maximum capacity.

Analysts at Oxford Economics said this constituted only a modest increase in supply, and only partly offset the fall in production caused by an unfolding crisis in Venezuela.

Brent crude prices were up 1.9 percent towards the end of trading at $74.76 a barrel. This helped the likes of Glencore, which jumped to the top of the FTSE 100, closing up 15.55p at 387.15p.

Royal Dutch Shell climbed 90.5p or 3.5 per cent to 2,707.5p, while BP was up 17.1p to 576.6p.

The FTSE 100 closed 1.67 per cent or 125.83 points higher at 7,682.27.

David Madden, market analyst at CMC Markets, said: “The FTSE 100 is firmly higher as the strength of commodity stocks has made the British market the envy of Europe. BP and Royal Dutch Shell both started out weaker on the session, but rallied in the wake of the announcement from Opec.”

Debenhams was up by 7 per cent or 1.13p at 17.23p after analysts said the department store would benefit from the store closures taking place at House of Fraser.

Gambling software firm Play tech closed 15.8p higher at 773.2p following news that it has been given the green light by Italy’s market authority to complete its takeover of rival Snaitech.