Oil stocks rose again as investors focused on tight energy supplies amid volatile markets.
Brent crude was trading around $107 a barrel as it recovered from a recent slide that saw its price drop below $100.
North Sea-focused Harbor Energy was one of the biggest gainers, up 2.1 percent, or 6.7 points, to 325.7.
Fast forward: Brent crude was trading around $107 a barrel as it recovered from a recent slide that saw it drop below $100
BP rose 0.3 percent, or 1.3 points, to 386.55, while rival Shell rose 0.5 percent, or 10 points, to 2,043.5.
Mid-cap energy shares benefited from oil’s recovery, with Tullow Oil up 4.5 percent, or 1.9p, to 43.9p and Energean adding 2.8 percent, or 27.5p, to 998p.
Firms linked to the sector also performed well, with oil rig builder Petrofac up 2.7 per cent, or 2.9p, to 112.4p and engineering firm Wood Group gaining 2.1 per cent, or 3.15 pence, to 156 pence.
Oil and gas prices have risen sharply since the war in Ukraine, as sanctions have severely limited supplies from Russia, one of the world’s biggest producers.
This was exacerbated by the recovery in demand after the pandemic. The boom has resulted in significant profits for oil and gas companies. But it has drawn criticism as rising prices have left households with exorbitant electricity bills.
Higher energy prices also show no signs of abating, with broker Jefferies raising its outlook.
Analysts predicted that the price of oil would remain at just over $105 a barrel at the end of 2022, down from a previous estimate of around $91.
The FTSE 100 was up 0.1%, or 7.16 points, at 7,196.24, while the FTSE 250 was up 0.2%, or 37.42 points, at 18,912.95.
Markets continued to swing amid worries about a global recession, despite hopes that aggressive action by central banks could bring inflation under control. Traders also watched for shenanigans in Westminster as the campaign to succeed Boris Johnson began to gain momentum, although Hargreaves Lansdown analyst Sophie Lund’Yates said the prime minister’s resignation was “not seen as a disaster” in the City.
Asian markets initially showed strong gains but closed largely unchanged after former Japanese Prime Minister Shinzo Abe was assassinated in the city of Nara.
Still, there was some good news from U.S. jobs data, which showed 372,000 jobs added to the economy in June — better than expected despite interest rate hikes by the Fed and some companies warning of layoffs.
Aircraft engine maker Rolls-Royce rose 2.2 percent, or 1.87p, to 87.13p after a faster-than-expected recovery in demand for passenger jet engines.
Recession worries weighed on some banking stocks, with Standard Chartered down 3 percent, or 17.6p, to 579.4p, HSBC losing 1.8 percent, or 9.8p, to 525.8p, and Lloyds down 0.2 percent, or 0.01 pence, to 42.2 pence. .
But NatWest rose 0.2 percent, or 0.5 point, to 218.8, while Barclays rose 0.6 percent, or 0.94 point, to 151.96.
Mining companies had mixed gains amid concerns that the slowdown would reduce demand for commodities such as iron ore and copper.
Anglo American rose 0.3 percent, or 8.5 points, to 2,824.5, while Rio Tinto fell 0.5 percent, or 25 points, to 4,835, Glencore shed 0.4 percent, or 1.9 points, to 431.35 points, while Antofagasta was down 0.3 percent, or 3.5 points. r., until 1113.
Other miner BHP fell 1.9 percent, or 43 pence, to 2,205.5 pence after losing an appeal to block a £5 billion lawsuit related to a 2015 dam failure in Brazil. As a result of the incident, 19 people died and provoked the worst environmental disaster in the history of the country.
And troubled lender Amigo fell 8.6 percent, or 0.42p, to 4.44p after boss Gary Jennison said the company had “learned the lessons of the past” following the fake-selling scandal that led to its collapse. It made £170m of profit in the year to 31 March.
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