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Petroleum industry

FTSE 100 Holds Firm Despite Oil Price Dip

Strategic Insights

— 1 min read

The FTSE 100 Index ended yesterday's session flat despite a significant drop in the price of oil, with Brent crude dipping close to $US47 a barrel to a near six-year low. This led to declines in heavyweight oil producers BP and Royal Dutch Shell, but the wider top-flight index held firm, ending 0.3 points higher at 6501.4. The oil price fall also weighed on energy companies in the FTSE 100, including SSE and Centrica, which fell after Labour leader Ed Miliband called for energy regulator Ofgem to be given new powers to force firms to cut gas and electricity bills.

Key Takeaways:

  • The FTSE 100 Index ended yesterday's session flat, despite the decline in oil prices, with a 0.3-point increase to 6501.4.
  • Oil producers BP and Royal Dutch Shell declined, with BP down 2.1p to 396.6p and Royal Dutch Shell down 33.5p to 2126.5p, due to the drop in oil prices.
  • The oil price fall also weighed on energy companies in the FTSE 100, including SSE and Centrica, which fell after Labour leader Ed Miliband called for energy regulator Ofgem to be given new powers to force firms to cut gas and electricity bills.
  • Lamprell, an oil rig engineering firm, issued a profits warning, stating that revenues for the year will be around 10% below current expectations due to increased pressure on margins.
  • Weir, a FTSE 100-listed oil and gas services firm, fell 44p to 1723p, following the decline of Lamprell shares.
  • GKN was the biggest riser in the FTSE 100 Index, up 10.7p to 348.5p.
  • SSE and BG Group suffered significant declines, down 92p to 1503p and down 30.1p to 800p, respectively.

Statistics:

  • The FTSE 100 Index ended yesterday's session with a 0.3-point increase to 6501.4.
  • Brent crude dipped close to $US47 a barrel, a near six-year low.
  • BP declined 2.1p to 396.6p, and Royal Dutch Shell down 33.5p to 2126.5p.
  • Lamprell revenues will be around 10% below current expectations for the year.
  • Weir fell 44p to 1723p.
  • GKN rose 10.7p to 348.5p.

Sources:

  • Business section of the WalesOnline website
  • FTSE 100 Index data
  • Brent crude price data
  • Lamprell profits warning statement
  • Weir share price data
  • GKN share price data

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