Brent crude extended its slide toward $87.40 a barrel on Thursday as talks between Qatar and Iran fueled expectations of reopening the Strait of Hormuz. The drop dragged London's energy majors lower and snapped the FTSE 100's longest winning streak since late May.
Brent crude fell 0.5% toward $87.40 a barrel, extending a multi-day slide as diplomatic talks between Qatari and Iranian officials in Tehran fueled expectations of an agreement to reopen commercial transit through the Strait of Hormuz.
The retreat in crude weighed directly on London's energy heavyweights. As a result, the FTSE 100 slipped 0.5%, pulling back after ending a six-session advance the day before — its longest winning streak since late May.
Energy majors drag, insurers offset losses
Softening raw material prices hit index titans Shell PLC and BP PLC, even as positive corporate prints across the insurance sector and broader risk relief from overnight U.S. mega-cap earnings countered some of the pressure. Yet Prudential PLC slipped 1.2% despite reporting an 8% increase in first-half new business profit to $1.38 billion.
Vehicle output adds to the industrial drag
Manufacturing data underscored ongoing headwinds. British vehicle production tumbled 11.6% year-on-year in July to 63,655 units, according to the Society of Motor Manufacturers and Traders, which cited a 15.9% drop in exports alongside earlier-than-usual summer maintenance shutdowns at key assembly plants.
Miners find support as traders eye Jackson Hole
Sinking oil prices weighed heavily on London's integrated energy producers, but industrial miners drew support from a seventh consecutive daily gain in zinc prices and firming copper markets. With domestic data digested and crude stabilizing, desks are now pivoting to Federal Reserve Chair Kevin Warsh's inaugural keynote address at the Jackson Hole Economic Policy Symposium on Friday, seeking clarity on the path of global borrowing costs into autumn.
Source: Investing.com
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