Oil majors boost the FTSE

Fiona Cincotta
By :  ,  Senior Market Analyst
The FTSE climbed northwards on Tuesday, well ahead of its European peers. Boosted by oil majors, the FTSE gained 0.7%, pushing through 7500 to a six-month high. 

Elsewhere in Europe equities fell with the Dax dropping 0.5% whilst the Cac declined 0.1%. There is still a holiday feeling today amongst traders, with little in the way of corporate announcements and no major economic data to digest. However, things will pick up as the week progresses with big name US earnings and US GDP data due Friday. 

BP rose 2% and Shell gained 1.8% as oil extended gains reaching a fresh six month high of $66.29. 

The White House halting exemptions to the sanctions on Iran will tighten an already tight oil supply. With OPEC cuts still in place and Iran’s oil exports on route to 0, oil is looking well supported at these levels and could easily move higher. 

A significant spike higher could be on the cards should the gap left by Iran oil exports not get plugged quickly. The overall picture right now points to risks that are skewed to the upside.
Oil continues to trade comfortably above its MA’s as it looks to target $77.

Related tags: Brent Crude Oil UK 100

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