FTSE 100 watch: Oil majors limit index’s losses

FTSE 100 watch: Oil majors limit index’s losses
Written by:
Tsveta van Son
16th September 2019
Updated: 11th March 2020

The FTSE 100 has fallen marginally lower in London this Monday, with a surge in BP (LON:BP) and Royal Dutch Shell (LON:RDSA) limiting the index’s losses over geopolitical concerns in the wake of the attacks on two Saudi Arabian facilities. Cruise operator Carnival (LON:CCL) meanwhile is in the doldrums, pressured by prospects for higher fuel prices.

FTSE 100 inches lower

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As of 13:21 BST, the Footsie had given up 12.99 points to stand 0.18 percent lower at 7,354.47. Investor attention has been firmly focused on oil prices today, after attacks on Saudi Arabian production facilities sent crude rallying.

“An attack on the oil facilities of Saudi Arabia’s state oil producer on Saturday has forced the country to freeze a large portion of its production, temporarily removing as much as 5% of global oil output from circulation,” Fiona Cincotta, a senior market analyst at City Index, explained, as quoted by Proactive Investors, adding that further “price shocks could be in the offing, particularly after President Trump said that the US is ‘locked and loaded,’ waiting to hear from Saudi Arabia on their views about the party behind the attack”.

Blue-chip oil majors BP and Shell have added 4.90 percent and 2.94 percent in early afternoon trade, respectively. Carnival, however, is 3.52 percent lower, while British Airways and Iberia parent IAG (LON:IAG) has given up 2.69 percent, with higher crude spelling a rise in fuel prices.

Individual movers

In individual FTSE 100 movers, Centrica (LON:CNA) is finding support in news that a consortium is interested in buying a stake in the UK’s ageing fleet of nuclear power stations. Shares in the British Gas owner are changing hands 1.16 percent higher at 76.72p.

Elsewhere on the blue-chip index, online grocer Ocado (LON:OCDO) has been little changed ahead of its third-quarter update tomorrow.

The FTSE 100 was 0.20 percent down at 7,352.52 points as of 13:38 BST on Monday, 16 September 2019.

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