Oil accelerates FTSE over 6,000 - London Report

RISING oil prices helped the FTSE 100 crack back above the 6,000 mark yesterday, as energy stocks helped the London index climb.

The FTSE 100 index, which had fallen 2.8 per cent in the previous session, closed up 1.6 per cent at 6,032.24 points.

Oil prices stabilised yesterday as a decline in US inventories offset weak economic data from China. Energy groups such as BP and Royal Dutch Shell advanced.

British Airways owner IAG rose 4.8 per cent, leading the index higher, after Morgan Stanley lifted its forecasts for IAG, saying that the company was its top pick in the sector.

Easyjet also joined the price take-off, up 3.5 per cent at the close.

Brenda Kelly, head analyst at London Capital Group, said IAG looks set to be one of the main beneficiaries of lower fuel hedging costs.

The FTSE 100 reached a record high of 7,122.74 points in late April but has since fallen back.

The index is down by nearly 10 per cent since the start of 2015, hit by concerns over an economic slowdown in China and the prospect of an interest rate rise in the United States.

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