16 May Rising oil prices lifts FTSE 100 to record high
London’s FTSE 100 stock market index closed at a record high on Monday thanks to a jump in the price of oil and other commodities, which boosted the share prices of several LSE-listed energy giants.
Oil majors BP (LSE:BP) and Royal Dutch Shell (LSE:RDSA), who together comprise over 13% of the FTSE 100, both climbed by 1% and 0.4% respectively, following a rise of nearly 3% in the price of crude.
The increased global prices in the black gold came after oil ministers from Saudi Arabia and Russia agreed to extend supply cuts made by OPEC by another nine months until March 2018.
“OPEC and its allies have been on manoeuvres once more, repeating their view that more production cuts are necessary in order to avoid another supply glut,” said Chris Beauchamp, chief market analyst at IG.
Major London-listed mining firms also benefitted from rising commodity prices, with Anglo American, Glencore and BHP all posting rises of between 2.2% and 3.3%.
The FTSE 100’s new record high indicates confidence is returning to investors as the UK continues to navigate its exit from the European Union.