A drop in oil prices triggered by a joint US and UK move to release strategic reserves pulled energy stocks and the wider FTSE 100 Index into the red today.
Britain and the US have reportedly agreed to cooperate to dampen high oil prices in a bid to prevent higher costs from hitting economic growth, causing the price of Brent crude in London to fall to $124.36 a barrel.
The FTSE 100 Index closed 4.7 points lower at 5,940.72, with Cairn Energy falling 4.9p at 331.4p, BP sliding 6.5p at 620.5p and BG Group dipping 14p at £15.27.
Supermarket chain Tesco was among the biggest fallers as chief executive Philip Clarke’s decision to take on the UK role currently held by Richard Brasher fuelled nerves over trading this year in the wake of a recent profits warning. Shares were 3.1p lower at 321.8p.
Next was one of the leading top flight risers after Bank of America Merrill Lynch raised its price target ahead of the company’s full-year results next week.
Next shares were up 74p to £29.01, a rise of nearly 3%, while Marks & Spencer continued to benefit from a more optimistic note on the retail sector and rose 4.3p to 375.1p.
The biggest Footsie risers included Lloyds Banking Group up 1p at 36.5p, Icap up 9.2p at 412.2p and Rio Tinto ahead 67.5p at 3,547.5p.
Among the biggest Footsie fallers were Shire down 70p at £21.58, Randgold Resources off 200p at £66.50 and Ashmore off 5.5p at 372.2p.
Alan MacPhee, of investment manager and financial planning specialist Brewin Dolphin in Aberdeen, noted STV Group rose 2.3% to 111p and Stagecoach added 0.57% to 265.8p.
Among the laggards, Parkmead dropped 6.02% to 19.5p, with Plexus dropping 5.17% to 110p and Nautical Petroleum losing 3.04% to 335p.