FTSE 100 watch: Stronger oil lends support to Footsie

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The FTSE 100 has climbed higher after the long Easter weekend, benefitting from a rise in oil prices. In individual Footsie movers, British Land (LON:BLND) is in the red as it announced a deal to exchange  on the sale of 12 superstores from its joint venture with Sainsbury’s (LON:SBRY).

FTSE 100 steady after long weekend

As of 12:26 BST, the FTSE 100 ha added 32.24 points to stand 0.43 percent higher at 7,492.12. Sentiment has been upbeat today, with oil prices climbing higher amid supply worries as the US said that it would end all Iran sanction exemptions by next month.

“Suddenly we’re back to supply uncertainty being a graver threat than demand uncertainty,” said analyst Neil Wilson, as quoted by Reuters. “This risks a very real prospect of an abrupt spike in prices if there is not enough supply to fill the gap. Risks seem skewed to the upside for oil and we may see a pop higher still.”

Blue-chip oil majors have been in demand with BP (LON:BP) currently trading 2.19 percent higher at 580.14p, while Royal Dutch Shell (LON:RDSA) is 1.95 percent up at 2,514.50p. By contrast, easyJet (LON:EZJ) is 3.36 percent down at 2,514.50p, while British Airways owner International Consolidated Airlines (LON:IAG) is 3.19 percent lower at 539.40p, with stronger oil spelling higher fuel costs for airlines.

British Land shares trade lower

In individual Footsie movers, shares in British Land have been sold off as the company announced that it had exchanged on the sale of 12 superstores from its joint venture with Sainsbury’s for £429 million, and was expecting net proceeds at about £95 million following the repayment of debt and associated break costs. British Land’s shares are 1.11 percent worse off at 589.00p.

The FTSE 100 was 0.45 percent up at 7,493.78 points as of 12:59 BST on Tuesday, 23 April 2019.

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