The FTSE 100 opened higher in the first day of trading since Christmas, despite a further fall in oil causing prices to hit an 11-year low.
The FTSE rose 0.3% in early trade on Tuesday, after the market was closed for the Bank Holiday on Monday.
However, the price of US crude oil fell over 3% overnight, while Brent crude remaining near 11-year lows. The glut, caused by oversupply and a lack of global demand, is set to continue into 2016 and possibly heighten with the addition of Iranian exports onto the market once economic sanctions against Tehran have been lifted.
Oil-rich countries including Saudi Arabia, the UAE and Kuwait have said they are counting on a growth in global demand to help smooth out the market in 2016; however, analysts remain uncertain as to how soon demand will increase next year – if at all.
29/12/2016
