A Rise in Energy Stocks Helps Boost FTSE

Source:

“Early gains for the UK's leading index were boosted by strong performances in the energy sector, as increased pressure on OPEC to reduce oil supply saw a rise in the price of crude.”

The FTSE made some slight gains to close at 4,309.08 today as a rise in oil prices helped boost energy stocks. The index rose 31.52 points over the day, led by Tullow Oil, up 8.49%, Aviva, up 6% and FirstGroup, which closed 4.88% higher.

A positive opening on the Dow Jones, which rose by 1.2% by 16:00 GMT, also helped support UK share prices. However, any gains were tempered by ongoing uncertainties in the economic climate.

Anthony Grech, market strategist at IG Index, said: "Early gains for the UK's leading index were helped along by strong performances in the energy sector, as increased pressure on OPEC to reduce oil supply saw a rise in the price of crude.” Less positively, the calls for reductions in oil production highlight the recessionary tale being told by falling demand. Grech added: “…the International Energy Agency is now predicting the first decline in demand for oil in a quarter of a century."

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