Oil major Shell will cut its spending by $15billion over the next three years. The move was made on the back of falling oil prices during the last six months. Despite this, Shell had posted an increase in profits for the last three months of 2014, which jumped from $2.2billion in the same period a year earlier to $4.2billion.
A resurgent FTSE 100 Index climbed for the fifth session in a row to reach a six-week high after a recovery in oil prices lifted energy stocks. Brent crude firmed at $49 a barrel, which lifted a range of oil and gas firms such as production and exploration giant BG Group. The FTSE 100 Index was 107.9 points higher at 6728 as the top flight extended its progress over the last week to more than 250 points.
A resurgent FTSE 100 Index posted more gains today as investors geared up for Europe’s long-awaited effort to stimulate the region’s economy. The boost provided by the European Central Bank’s expected announcement tomorrow of a programme of quantitative easing came alongside a rally for oil stocks after Brent crude firmed at near to $49dollars a barrel.
BP shares were sharply higher today after a judge in the United States ruled that the Gulf of Mexico oil spill was smaller than government estimates. District judge Carl Barbier said that 3.19 million barrels were discharged into the Gulf after the rig explosion at BP’s Macondo well, more than the 2.4 million-barrel figure BP had argued for but less than the US government’s estimate of about 4.2 million. The latter figure could have meant $18 billion (£12 billion) in maximum penalties under the Clean Water Act.
The FTSE 100 Index posted healthy gains today as a revival in supermarket shares diverted attention away from continued trouble for oil stocks. Oil stocks were on the back foot again after the price of Brent crude declined to as low as $45 a barrel.
Fresh pressure on energy stocks failed to derail the FTSE 100 Index today, even as oil prices slid further away from the $50 dollars a barrel mark. BP was 1.9p lower at 396.6p and Royal Dutch Shell dipped 15p to 2145p but the top flight index clung to positive territory - up 24.6 points at 6525.6.
Oil prices have tumbled to their lowest level in nearly six years as a glut in supply coincides with shrinking demand amid fears for world economic growth. The plunge looks set to prove a boon for consumers as it feeds through to lower petrol costs and depressed inflation - currently at a 12-year low of 1% and expected to fall further - but hurts the prospects of UK-listed companies. Brent crude today headed close to $51 a barrel, nearing the $50 that has not been seen since May 2009.
The FTSE 100 Index headed lower for a third session in a row today in a slump driven by sliding oil prices and fears of a Greek exit from the euro. London’s leading share index had lost 2%, or 130.6 points, in the previous session and was again lower, by about 0.8%, to 6366, as the markets showed little sign of sparking into life after a dismal start so far to 2015.
A weakening oil price meant BP and Royal Dutch Shell remained under pressure despite a steady start to the year for the FTSE 100 Index. BP shares topped the fallers board with a decline of 1.5% as the price of Brent crude slipped to $56 a barrel due to ongoing fears of a supply glut.
Brent and US crude oil prices both hit five year lows yesterday, before rebounding slightly, and experts expect them to go lower still. Benchmark Brent was down by 36 cents a barrel to $57.52, putting it on track for its second weakest month since the global financial crisis of 2008, while US crude was off 3 cents at $53.57 by late afternoon UK-time. Richard Hastings, a macro strategist at American investment bank Global Hunter Securities said US crude would likely break below $50 in the next few trading days.
The London market’s festive rally came to an abrupt halt today amid lower oil prices and fresh uncertainty over Greece’s future in the euro. With the FTSE 100 Index 57.6 points lower at 6575.9, the top flight is on course to complete its first negative session since December 15. Commodity firms dominated the fallers board after the price of Brent crude oil dived to a five-and-a-half year low of near to 57 US dollars a barrel.
The London market picked up where it left off before Christmas as strong trading among mining stocks helped the FTSE 100 Index to more gains. A strong session for Asian markets overnight and a modest recovery in the price of Brent crude oil to about 60 US dollars a barrel ensured the likes of BHP Billiton, Rio Tinto and BP were in positive territory. Amid thin trading volumes, the FTSE 100 Index was higher for an eighth session in a row - up by 14.5 points at 6624.4.
Having reached 2014 highs in June, crude oil prices started to free fall and in the search for reasons some people have pointed towards the International Energy Agency's (IEA) changing demand and supply expectations. Since June, when its 2014 global oil demand growth forecast hit a peak of 1.4million barrels per day (bpd), IEA’s projections have fallen by half. By contrast, supply expectations have been much more stable – since June, the IEA's forecasts of non-Opec (Organisation of the Petroleum Exporting Countries) oil supply growth have expanded by a modest 300,000bpd and the IEA's non-Opec supply forecast is currently only 100,000bpd above the level at which it started 2014.
The pre-Christmas rally for the FTSE 100 Index continued today despite the impact of lower oil prices on heavyweight energy stocks. The price of Brent crude fell back to 60 US dollars a barrel amid signs that Saudi Arabia is focused on maintaining its market share rather than cutting back production. Exploration firm BG Group was the biggest faller in the top flight, with a decline of 2% or 15.9p to 870.2p. Tullow Oil was off 0.8p at 406.2p.
Energy-based stocks maintained the London market’s pre-Christmas rally today after benefiting from a rebound in the price of oil. Comments from Saudi petroleum minister Ali Naimi that he was certain the oil market would recover with the improvement of the global economy helped the price of Brent crude rally to just below 63 US dollars a barrel. This provided a much-needed boost to Royal Dutch Shell, which lifted 3% or 61p to 2283.5p, whilst BP added 2% or 9.2p to 422.2p.
The FTSE 100 Index completed its best week in three years today - just a week after its worst in three years. London’s top-flight was up 3.9% after recent market jitters were assuaged by indications from the US Federal Reserve that while the world’s largest economy is improving there will be no hurry to raise interest rates. The FTSE 100 has enjoyed its biggest weekly climb since December 2011, adding £62 billion to the value of its constituent companies.
A pledge by US policymakers that they will be patient in their approach to raising interest rates helped ease global market jitters today. The latest meeting of the US Federal Reserve highlighted optimism over the country’s economic performance but appeared to rule out a rates rise in the first quarter of the year. The message lifted the Dow Jones Industrial Average on Wall Street by more than 1.5% and helped the FTSE 100 Index improve 35.3 points to 6371.9 after a strong session for Asian markets overnight.
The FTSE 100 Index held on to strong gains in the previous session today as a bullish start for Wall Street and an oil price bounce helped blue-chip shares recover from earlier turbulence. A volatile session on Tuesday hit by jitters over the price of oil and the slide in value of the Russian rouble had seen the index close 2.5% ahead. The latest session saw it earlier fall by nearly 100 points but recover to close 4.6 points up at 6336.5. Oil climbed back above the 60 US dollars mark for a barrel of Brent crude.
Volatility for world markets continued today as the FTSE 100 Index put back a large chunk of the 2.5% rise seen in its previous session. Oil prices steadied at 60 US dollars for a barrel of Brent crude but this was not enough to prevent another weak session in Europe as confidence was hit by the continued financial crisis in Russia. The FTSE 100 Index stood 45 points lower at 6287.1, having rebounded by 2.5% or 149 points at the end of choppy trading yesterday.
A defiant session for oil stocks helped calm investor nerves in the wake of the worst week of trading for London’s FTSE 100 Index since August 2011. There was some buying interest in a number of heavyweight oil companies as the price of Brent crude stabilised at around 63 US dollars a barrel. More big losses for Asian markets had fuelled expectations for fresh falls in London but the FTSE 100 Index held firm at 19.3 points higher at 6320.1.
A better session for energy stocks today helped the FTSE 100 Index steady after its worst week of trading since August 2011. Investors found some value in a number of heavyweight oil companies as the price of Brent crude stabilised at around $63 a barrel.
Energy stocks have received some respite after their battering yesterday in the wake of the latest slide in the price of oil. Brent crude held firm at just over 64 US dollars a barrel, having fallen sharply on Wednesday when a monthly report by industry cartel Opec said demand next year was expected to fall to its lowest level in a decade. The FTSE 100 Index, which opened the week at 6742, dipped below 6500 at one stage before recovering by 10.8 points to 6510.7 amid lacklustre trading.
A fresh slide in the price of oil piled more pressure on investors today after £36 billion was wiped from blue-chip shares in the previous session. Brent crude stood at just over 64 US dollars a barrel - a drop of more than 40% on earlier in the year - after a monthly report by industry cartel Opec said demand next year was expected to fall to its lowest level in a decade. The FTSE 100 Index, which slid 2% on Tuesday, had been in positive territory for much of the session but the oil slump meant the top flight finished 29.4 points lower at 6500 - its lowest level since the start of last month.
Fears over Chinese demand combined with another decline in oil prices to trigger a poor start to the week for European markets. A slump in export growth in the world’s second largest economy spooked investors, particularly as imports also contracted rather than expanded.
The FTSE 100 Index finished 25.5 points lower at 6716.6 as continued volatility in oil prices - with Brent crude trading at just below 71 US dollars a barrel - pegged back the performance of commodity stocks. Royal Dutch Shell was in focus after spiking yesterday on the back of speculation linking it to a merger with BP. Shares fell back 33p to 2259p but BP rose another 3p to 436.85p.