MARKET REPORT: Oil falls below $70 for the first time since Ukraine invasion

Oil prices have fallen below $70 a barrel for the first time since before the invasion of Ukraine amid fears about the outlook for the global economy.

Brent crude, the main benchmark in London, fell 3.5 percent to $69.32 a barrel.

That was the lowest level since December 2021, before the Russian invasion in February 2022 sent energy prices soaring.

The drop came as traders were concerned about the health of the global economy, including a slowdown in China.

BP shares fell 2.3 percent, or 9.2 pence, to 397.5 pence. Shell shares fell 1.5 percent, or 37.5 pence, to 2,508.5 pence.

Oil and gas producer Serica Energy said it will leave the North Sea unless Labour reverses its tax attack on the industry.

The company has promised to outline its future investment plan after the autumn budget, but Serica, which produces 5 per cent of the UK’s gas, has warned Chancellor of the Exchequer Rachel Reeves against scrapping key emissions allowances on which the industry relies.

It could cancel its project at Buchan Horst – one of the largest remaining undeveloped oil and gas fields – if more taxes are imposed.

Chief executive Chris Cox said investments in the domestic oil and gas sector are the “lifeblood” of companies in their supply chain.

He added: “Serica has spent more than £1bn on the UK supply chain over the past five years, and similar spending will be lost in the future if the tax regime makes future investments unprofitable.”

Shares fell 2 percent, or 2.3 pence, to 114.8 pence.

The FTSE 100 fell 0.8%, or 64.86 points, to 8,205.98 and the FTSE 250 rose 0.03%, or 5.26 points, to 20,656.14.

Alpha Group’s founder will leave the company at the end of this year. Morgan Tillbrook, who created the financial services business in 2009, will be replaced as chief executive by chairman Clive Kahn.

Tillbrook has pledged to maintain a stake of at least 10 percent for the next three years, given that it is the largest shareholder with 14 percent.

Shares fell 11.1 percent, or 260 pence, to 2,090 pence.

Semiconductor wafer maker IQE also suffered heavy losses after warning that its performance will be at the lower end of market forecasts this year as the industry is unlikely to recover until 2025.

Analysts had expected revenue to range from £130m to £153.7m, with profits of £11.1m to £16.6m. Shares fell 19.2 per cent, or 4.56 pence, to 19.14 pence.

Shopping centre operator Capital & Regional also plunged into the red after property investor Praxis backed out of a bid. Shares fell 7.4 per cent, or 5.1 pence, to 63.9 pence.

Business consultancy TPX Impact said annual revenue growth would be flat next year as Labour reined in spending to shore up public finances.

Shares fell 5.7 percent, or 2.5 pence, to 41.5 pence.

IWG has become the latest company to be asked to move its main listing from the UK to the US. Shareholder Buckley Capital, an investment firm, believes the move could help the office rental company increase its value.

Shares gained 2.5 percent, or 4.3 pence, to 174.9 pence.