The FTSE 100 rose on Monday as rising oil prices helped lift commodity related shares with miners and oil majors among the top risers.
Oil prices have crossed the $110 mark and Brent Crude was trading at $112 per barrel in early morning trade on Monday.
BP and Shell were both up in the region of 3% in early trade on Monday adding a significant number of points to the index.
Oil prices surged as Houthis struck an LNG plant in Saudi Arabia resulting in increased uncertainty regarding the supply of oil.
“The new trading week saw the FTSE 100 rise 0.5% thanks to strength in commodity producers. BP and Shell were among the top risers as oil prices continued to creep back up. Brent Crude traded 4.2% higher at $112 per barrel, dashing all hopes of businesses and consumers that this key driver of inflation was losing momentum,” said Russ Mould, Investment Director, AJ Bell.
Oil prices were also pushed higher as hope faded their would be a ceasefire in Ukraine.
’Optimism is seeping away about progress in talks to achieve a ceasefire in Ukraine and that’s sent the price of oil on the march upwards again amid heightened worries about supply. As Ukraine refuses to surrender to Russian forces in Mariupol despite the devastating siege of city, the chances of a breakthrough in negotiations are fading, with a gulf in position separating the two countries,” said Susannah Streeter, senior investment and markets analyst, Hargreaves Lansdown.
Other top performers included Polymetal, Antofagasta, Glencore and Anglo American which gained 9.7%, 4,1% and 2.6% respectively.
Antofagasta rose as it exited its contentious Pakistani mining project, from which it expects to receive $900 million in 2023.
The FTSE 100’s fallers were led by the Ocado Group with a decease of 3.8% to 1,143.2p as loses in Ocado shares racked up after a disappointing update.
The online retailer had been hit with a series of failures in 2021 including a robot fire in its London properties and an evidently poor transition into a post-Covid market.
Pearson’s share price declined 2.7% to 785.4p as the stock continued to lose its shine following the rejection of £7 billion takeover bid from Apollo.