Oil prices plunged to a four-month low as investors worried that a slowdown in the global economy would hit demand.
On a turbulent day on commodity markets, Brent oil prices fell more than 5 percent to below $77 per barrel, the lowest level since early July.
As recently as September, oil prices were nearing $97 a barrel, and last month the World Bank warned that oil prices could exceed $150 if the conflict in Gaza ignites a full-scale war in the Middle East.
The price drop will be welcomed by businesses and motorists who could benefit from cheaper petrol and diesel.
But it did little for London oil shares, with BP down 2.84 percent or 13.7p to 468.4 and Shell down 3.04 percent or 80p to 2,555.5p, while midcap rival Harbor Energy fell 7.37 percent or 17.8p fell to 223.9p. .
On a turbulent day on commodity markets, Brent crude fell more than 5 percent to below $77 a barrel, the lowest level since early July
The fall in heavyweight oil stocks helped pull the broader London market into the red after three days of gains.
Signs of optimism emerged again this week after inflation fell more than expected in Britain and the US. This led to speculation about a possible interest rate cut.
But markets fell again yesterday as the FTSE 100 fell 1.01 per cent or 75.94 points to 7,410.97 and the FTSE 250 fell 1.74 per cent or 325 points to 18,351.48.
Trading was also subdued in Europe, while on Wall Street the Dow Jones Industrial Average fell 0.13 percent.
Danni Hewson, head of financial analysis at AJ Bell, said: ‘There would only be a limited amount of time for the inflation relief rally to last – and today time was running out.
“Investors haven’t changed their minds about when they expect rates to start falling, but they also can’t ignore the fact that there’s a long gap between now and then, with it still causing a bit of unrest here and now. problem.’
There was some optimism at Great Portland Estates, which owns offices and shops in the West End and City of London. It said it was now buying more properties in the capital than it was selling for the first time in a decade.
As workers returned to central London, the outlook for rental growth also improved.
But as higher interest rates hit the value of the property portfolio – which fell 10.3 per cent to £2.3bn in the six months to September 30 – shares fell 5.35 per cent or 23.8p to 421.4p.
CAB Payments rose 3.08 percent or 1.9p to 63.5p after reports that a senior executive called a former top 20 investor to reassure them the company would meet revised forecasts.
Oliver Brown, fund manager at RC Brown, said the London-listed company was “absolutely adamant that they will not have another profit warning (in 2023)”.
The group, which specializes in money transfers to emerging markets, fell 72 percent in one day last month after warning that this year’s revenues should be much worse than expected.
Kier Group faced its third shareholder revolt over big pay in as many years, with 39% of investors voting against the remuneration policy at the Annual General Meeting.
Shares in the construction group fell 0.57 percent or 0.6p to 105.4p.
Nearly a fifth of Wetherspoon shareholders voted against the re-election of the pub chain’s boss, Tim Martin, at the AGM. Shares fell 5.88 percent or 43.5p to 696.5p.
There was better news for Aviva after the insurer’s premiums rose 13 percent to £8 billion in the three months to September 30.
It added that weather-related claims had increased but remained within expectations following bushfires and floods in Canada, in addition to storms Babet and Ciaran in Britain. Shares fell 0.24 percent or 1p to 413p.