Oil giants lead FTSE as crude prices climb

Market report Hannah Burley

Oil prices hit their highest level so far this year, fuelled by violent clashes in oil-rich Libya.

The country has been hit by fighting between competing administrations, claiming the lives of at least 25 people and pushing several thousand to flee the violence. The instability poses a threat to the supply of oil from the country.

A barrel of Brent crude was trading 0.97 per cent higher at $71.08. But the rally was not enough to cause any major movements on European markets or currencies, with the FTSE 100 and pound almost flat at the end of the day.

Sterling was flat versus the dollar at $1.304, and fell 0.19 per cent against the euro to €1.158.

“With hints of some kind of Brexit breakthrough between Theresa May’s government and Labour, alongside news of the PM’S extension-seeking whistle-stop tour of Berlin and Paris, but no hard evidence of progress, sterling was pretty mixed,” said Connor Campbell, financial analyst at Spreadex.

Meanwhile, the FTSE 100 climbed just 5.02 points to 7,451.89. Oil giant BP led the risers on the blue-chip index, benefiting from the higher oil prices to rise 9.6p to 578.2p, closely followed by A shares in Royal Dutch Shell, which were up 29.5p to 2,505p.

In other news, student accommodation provider Unite Group said that reservations for the next academic year are ahead year-on-year. Shares in the firm were up 1.5p to 935p. British Gas owner Centrica revealed that chief executive Iain Conn pocketed a £2.4 million pay packet last year, despite the firm losing hundreds of thousands of customers and embarking on a major jobs cull. Shares fell 0.5p to 110.2p.