Oil prices fell to a four-month low amid concerns about plans to boost supplies even as demand cools.
After falling 3 percent to below $80 a barrel on Monday, Brent crude fell again yesterday and fell another 2 percent to $77.
This marked the second day of losses since the Organization of the Petroleum Exporting Countries (OPEC) and its allies agreed that members could begin phasing out voluntary cuts to oil production from October.
The cartel, led by Saudi Arabia and Russia, has restricted production since November 2022 in a move aimed at propping up prices.
The drop will be welcomed by businesses and motorists, who could see cheaper petrol and diesel at the pumps.
Oil drop: After falling 3% yesterday to below $80 a barrel, Brent crude oil fell again today and fell another 2% to $77.
BP shares fell 3.8 per cent, or 18.3 pence, to 462.9 pence and Shell lost 2.1 per cent, or 59.5 pence, to 2,723 pence.
Miners were also under pressure, with Anglo American falling 4 per cent, or 99.5 pence, to 2,403.5 pence, Glencore losing 2.7 per cent, or 13.1 pence, to 468.4 pence and Fresnillo falling 7.8 per cent, or 48p, to 568.5p.
That proved to be a drag on the broader market with the FTSE 100 falling 0.4 per cent, or 30.71 points, to 8,232.04 and the FTSE 250 losing 0.9 per cent, or 182.5 points, to 20,717.99.
Cigarette giant British American Tobacco has sounded the alarm over falling cigarette sales in the US and the rise of illegal disposable vapes.
The company expects revenue and profits during the first half of 2024 to be 1 to 5 percent lower than a year ago. The shares fell 0.5 per cent, or 13p, to 2,422p.
Vistry will build and sell around 1,750 rental homes in the south-east of England.
The housebuilder has signed a £580m deal with Blackstone and its minority investment partner Regis. The homes will be managed by Leaf Living. The shares lost 0.9 per cent, or 12 pence, to 1,297 pence.
Stock Watch – Oxford Biodynamics
Oxford Biodynamics shares rose after it developed a blood test that can diagnose six different types of cancer in dogs.
The AIM-listed biotechnology company said data from the trial will be shared with veterinary groups to improve its effectiveness.
Non-invasive treatments can detect if cancer is present, but they cannot distinguish the different types.
But his test will help veterinarians diagnose specific diseases quickly and reliably, he said. The shares added 8.8 per cent, or 0.7p, to 8.69p.
Wizz Air soared after revealing it was carrying more than 5 million passengers in May.
This represented an increase of 2.1 percent from the previous year, while its load factor increased slightly to 91 percent. The shares rose 0.3 per cent, or 6p, to 2,420p.
Cruise company Carnival rallied after investment bank Peel Hunt encouraged its clients to buy shares.
The broker noted high demand, increased onboard spending by customers taking advantage of special offers and greater mass-market appeal.
The shares soared 7.3 per cent, or 79.5p, to 1,173.5p.
Gooch & Housego, which makes products such as medical eye scanners, collapsed after its profits nearly disappeared.
Profits fell from £3.6m to just £300,000 in the first half to the end of March, while revenue fell slightly to £63.6m.
The company said demand has been weak for longer than expected and that operations were affected because customers took more time to buy new shares. The shares fell 5.9 per cent, or 34 pence, to 540 pence.
Petrofac shares soared after trading for the first time in more than a month. The oil rig builder delayed publishing its annual results to the end of April at the request of its auditor.
This resulted in the suspension of its shares since May.
Petrofac released its delayed results last week, prompting the stock to resume trading yesterday. The shares rose 29.1 per cent, or 3.05p, to 13.55p.