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London open: Stocks rise as oil prices continue to rally
London stocks rose on Tuesday as oil prices continued to gain on supply disruptions in Nigeria and forecasts for falling US crude inventories.
Brent crude rose 0.25% to $50.68 per barrel and West Texas Intermediate climbed 0.22% to $49.80 per barrel at 0903 BST.
The Bonny Light crude output in Nigeria has dropped an estimated 170,000 barrels per day (bpd) following attacks on pipeline infrastructure, Reuters reported citing a source.
Meanwhile, a report from the American Petroleum Institute at 2130 BST is expected to show US crude inventories fell 3.5 million barrels last week, helping to soothe concerns about the global supply glut.
In UK economic data, the British Retail Consortium said retail spending picked up in May after two flat months. Spending rose 0.5% on a like-for-like basis compared to a year earlier, beating estimates for a 0.3% increase and following a 0.9% decline in April.
Halifax revealed UK house prices rose 0.6% in May compared to a month earlier, compared to forecasts a 0.3% gain and the previous month’s 0.8% fall.
German industrial production climbed 1.2% year-on-year in April, surpassing expectations for a 1.0% rise and March’s 0.4% increase.
Still to come, the final estimate of first quarter eurozone gross domestic product at 1000 BST and US consumer credit at 2000 BST.
On the corporate front, oil producers were the biggest risers on the back of a rally in crude prices with BHP Billiton, Royal Dutch Shell and Tullow Oil in the black.
Shell said it was increasing the level of cost cuts from its merger with BG Group to $4.5bn from $3.5bn.
Sports Direct advanced as chairman Mike Ashley prepared to give evidence before the Business, Innovation and Skills Select Committee at 1100 BST over allegations of poor treatment of agency workers.
RWS Holdings was higher as the intellectual property support services provider reported a rise in first half profit due to revenue growth, driven by acquisitions.
