Oil hits highest level in three years as OPEC countries meet




RRoyal Dutch shell shares jumped 41.8p to 1,488.6p, following reports that the oil giant is considering leaving Aera, its California-based energy joint venture with ExxonMobil.

Shell has divested many carbon-intensive assets this year as it shifts new investments to renewable forms of energy.

In May, a Dutch court ordered Shell to reduce its greenhouse gas emissions by 2030.

Oil prices have skyrocketed this year, gaining more than 50% as demand rebounds after travel restrictions are lifted in the event of a pandemic.

Rising prices prompted many oil producers to put assets up for sale. The rush to sell has been amplified by pressure from investors to reduce investment in fossil fuels in order to stem climate change.

West Texas Intermediate crude futures traded above $ 75 (£ 54.5) a barrel for the first time since October 2018, as the market waited for an OPEC + decision on future production levels. Brent crude also hit $ 76.71 per barrel, its highest price since October 2018.

Gains in energy stocks and positive business updates helped the FTSE 100 to enjoy his best session in nearly two months, climbing from 1.25 pc to 7,125.16, while the FTSE 250 also rose 246.52 points to close at 22,622.54.

JD Sports was the top index winner at 5.4%, after Britain’s largest sportswear retailer said it would step down as executive chairman from Peter Cowgill and recruit a managing director during the ‘next year.

“JD Sports finally made the wise decision to split the role of executive chairman and general manager,” said Russ Mold, chief investment officer at AJ Bell.

Meanwhile, a food and clothing retailer Associated British foods rose 4.8% to post its best session in more than four months, after third-quarter sales at its Primark stores exceeded market expectations.

Travel stocks also gained 2.6%, as Boris Johnson said he was confident fully vaccinated Britons could travel overseas this year.

AJ Bell financial analyst Danni Hewson said: “There may not be a capital ‘F’, it may come with some limitations, but Boris Johnson has promised ‘the day of freedom’ and he arrives July 19. elevators across the FTSE 100 and 250 in the leisure and travel industries.

“The former welcomed the prospect that social distancing could finally stop hampering trade and the latter seized on the Prime Minister’s other comment that vaccine passports should allow holidays abroad this summer.”

Sterling fell after Bank of England Governor Andrew Bailey warned of overreacting to rising inflation.

The pound slipped in morning trading to $ 1.3765 against the dollar, its lowest level since April. Against the euro, the pound sterling also fell during the session to its lowest level in 16 days at 86.15 pence.



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