Weaker oil stocks hit the FTSE 100 Index today as prices tumbled to a four-year low on expectations that Opec will not take action to cut production.
BP, Royal Dutch Shell and Petrofac were among the fallers as the FTSE 100 remained close to its opening mark at just 5.2 points higher at 6734.4.
The cost of Brent crude dipped to around 76 US dollars a barrel, a third below its level in June, as members of the Opec oil cartel gathered in Vienna.
Saudi Arabia, which dominates the 12-member organisation, has downplayed the likelihood of a cut in production, with oil minister Ali Naimi arguing that the market would eventually “stabilise itself”.
Oilfield services firm Petrofac, which issued a profits warning on Monday, came under further pressure as its shares slipped by another 23p to 876.5p.
BP was down 2.5p to 435.5p, Royal Dutch Shell lost 17.75p to 2348.75p and BG Group dipped 16.75p to 1032.75p.
Retail stocks also featured on the FTSE 100 fallers board, with Sainsbury’s 3.4p lower at 235.5p, Tesco off 2.1p to 185.1p and Marks & Spencer down 2p at 478.4p.
Stagecoach’s success in securing the East Coast rail franchise along with joint venture partner Virgin triggered a big rise in its share price today.
The FTSE 250 Index stock surged 7% or 27.75p to 397.75p as the award from the Department for Transport meant that from next year it will be running the UK’s two main London to Scotland rail routes.
In the wake of the rail franchise award, shares in unsuccessful bidders National Express and FirstGroup were 10.5p higher at 251.3p and 0.2p stronger at 108.2p respectively.
FirstGroup shares were initially down by 6% as the announcement extended its run of franchise disappointments, having recently failed to win a new ten-year ScotRail contract, which it has operated since 2004.
Elsewhere in the FTSE 250, shares in Thomas Cook showed signs of steadying after the slump seen yesterday in the wake of the surprise departure of chief executive Harriet Green. Shares were up 5% or 5.25p to 118.75p, having fallen by 18% on Wednesday.
In corporate results, shares in discount retailer Poundland rose 2% or 8.2p to 318.2p after it reported a rise in half-year profits and said it was confident of further progress over the remainder of the year.
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