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Oil rally lifts FTSE above 7,100

by LLB Editor
2nd Jun 21 12:14 pm

The FTSE 100 built on yesterday’s strong performance to trade solidly higher on Wednesday morning, lifted by rising oil prices which boosted the big energy firms on the index, BP and Shell.

An upbeat assessment of demand from producers’ cartel OPEC and the waning prospect of a big increase in Iranian supply have helped support a rally in crude prices. Something which could make the market a little nervous if it is sustained given investors’ current preoccupation with inflation risks.

“Positive US manufacturing figures overnight offered the latest insight into the pace of the recovery across the pond and jobs figures on Friday may give further indication of whether the world’s largest economy is gently simmering or at risk of boiling over,” says Danni Hewson, financial analyst at AJ Bell.

“Budget airline Wizz Air laid bare the predicament facing the airlines in stark terms as it reported a big annual loss, saying there would be further losses in the current financial year without an ‘accelerated and permanent’ lifting of restrictions. This could prove a forlorn hope as governments look to contend with the threat posed by Covid variants.”

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