Slippery oil prices wash away good start to day for London’s top index

The FTSE 100 opened in fine spirits to touch a new pandemic era high, but recoiled to close in the red on the back of drifting oil prices.

London’s top index had been boosted by BP’S highest profits in eight years, but the oil major lost steam, ultimately pulling the FTSE with it and it ended the day down 6.4 points, or 0.08%, at 7,567.07 points.

Michael Hewson, chief market analyst at CMC Markets, said: “Despite a positive opening, European markets have slipped back.” Strength in the US dollar and resumption of nuclear talks between the US and Iran appeared to be the cause of the pull-back on oil prices.

The price of Brent crude fell by 2.59% to $90.31 per barrel when the London markets closed. This pushed down on BP, which earlier revealed it swung to a mammoth $12.8 billion (£9.5bn) underlying profit in 2021 from losses of $5.7bn (£4.2bn) the previous year. Shares in BP closed 9.65p lower at 399p despite more returns for shareholders.

Elsewhere in Europe, other key markets stayed afloat despite depleting confidence. The French Cac was up 0.24% and the German Dax was 0.2% higher at end of trading.

Across the Atlantic, US stocks edged nervously higher as traders waited for key economic data, with tech-heavy Nasdaq index particularly shaky.

Meanwhile, sterling made minor gains, rising against a euro which weakened after European Central Bank president Christine Lagarde tempered expectations over a potential rate rise. The pound was up 0.01% against the US dollar to 1.355, and rose 0.02% against the euro to 1.188.

In company news, Ocado shares plunged to their lowest in two years after the online retail giant blamed labour shortages for holding back growth. Big risers on the FTSE 100 were Polymetal, up 37.5p to 1,088.5p; Anglo American, up 106.5p to 3,489.5p; and Intercontinental Hotels Group, up 117p to 4,982p.

The biggest fallers were Ocado, down 182p to 1,225p; London Stock Exchange, down 212p to 6,976p; and Croda, down 208p to 7,434p.

“Despite a positive opening, Euro markets slipped back