Home Stock & Shares FTSE 100 closes on a high before crude oil prices crash

FTSE 100 closes on a high before crude oil prices crash

by Jonathan Adams
FTSE

The FTSE 100 closed for the day up by 25.87, or 0.45 percent to 5812.8 just hours before the price of crude oil crashed into negative territory

The FTSE 100 has closed for the day up by 25.87, or 0.45 percent to 5812.8 just hours before the price of crude oil crashed into negative territory.

THE FTSE 100 opened on the front foot this morning with analysts hailing the progress as a “very positive message”. London’s blue chip FTSE 100 index were up about 0.4 percent on the open as the coronavirus continues to grip the world. The London Stock Exchange closed hours before the price of crude oil fell into negative territory for the first time in history.

The blue-chip index rose 0.5 percent, boosted by a four percent jump in Unilever Plc and Reckitt Benckiser, and a two percent rise in AstraZeneca.

However, Royal Dutch Shell and BP fell by two percent and 0.4 percent respectively, as the US crude futures contract plunged more than 50 percent on worries about lack of storage and a weakening global economy.

International demand for crude oil has slumped as firms run out of storage space due to the coronavirus lockdown.

Oil barrel prices had started the day at $15 a barrel.

The oil market has been under pressure due to a spate of reports on weak fuel consumption and grim forecasts from the Organization of the Petroleum Exporting Countries (OPEC) and the International Energy Agency.

The volume of oil held in US storage, especially at Cushing, Oklahoma, the delivery point for the U.S. West Texas Intermediate (WTI) contract, is rising as refiners throttle back activity due to slumping demand.

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