The FTSE 100 slipped 0.1% on Wednesday as a sharp drop in crude oil prices weighed on Shell and BP, offsetting gains in homebuilders and industrial miners. A 2% fall in global oil benchmarks followed reports that Iran and Oman have resumed talks over the Strait of Hormuz, while a rally in copper cushioned the broader index.
British blue-chip shares edged lower on Wednesday, holding near multi-week peaks even as a slide in crude oil prices dragged on the index's heaviest energy names. Shell and BP each fell more than 1.5%, offsetting gains across homebuilders and industrial miners. The session followed a stronger day for UK equities, which had drawn support from the government's newly unveiled housing plans.
Oil slide pressures energy majors
The primary drag on the London benchmark was a 2% drop in global oil benchmarks, driven by reports that Iran and Oman have resumed bilateral talks to manage and potentially reopen the Strait of Hormuz. This prospect of restored maritime transit eased immediate supply fears and pushed Brent crude futures down toward $86 a barrel, triggering profit-taking across energy majors. Softening raw material costs, however, provided relief to consumer-facing sectors even as they hit Shell and BP directly.
Housing plan and metals rally offer support
That cautious session followed strength tied to the UK government's newly unveiled £10 billion social housing program aimed at boosting low-cost construction nationwide. Industrial metals added further support: copper prices surged to a six-month high amid dwindling London Metal Exchange inventories, an operational tailwind for miners Rio Tinto and Anglo American, even as gold eased slightly ahead of upcoming U.S. inflation data. Hochschild Mining surged 6.4% after the precious-metals miner said its first-half adjusted EBITDA more than doubled.
Index holds near recent highs
Despite the drag from energy stocks, the FTSE 100 was holding within reach of its multi-week high, as gains in copper-linked miners and homebuilders offset the losses at Shell and BP.
Source: Commodities & Futures News
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