Oil giants slip despite Iraq co-operation with UN

OIL giants BP and Shell weighed on the London market yesterday as the FTSE 100 Index failed to make any progress in another quiet session.

Hopes that Iraq’s co-operation with UN weapon inspectors will take the pressure off global oil prices caused both BP and Shell to lose ground.

And despite strong gains by struggling business services group Hays, the falls were enough to push the Footsie down 1.6 points to 4094.9.

The Footsie has been stuck around the 4100 barrier for almost three weeks and there was little to encourage investors to part with their cash yesterday.

Details of the Bank of England’s decision to leave interest rates on hold two weeks ago also acted as a dampener.

BP ended the day down 11.5p at 407p, a drop of almost 3%, while Shell fell 5.25p to 408.75p as forecasts of subdued oil prices held sway.

Mobile phone group mmO2 lost the gains made after strong half-year results and fell back 1.75p to 51.75p.

Among smaller stocks, however, it was a bad day for Pizza Express, as it fell 13% or 45.5p to 303.5p after former boss Hugh Osmond withdrew from takeover talks.

In the FTSE 100, the top risers were Hays, up 6.5p to 89.5p, Canary Wharf, up 18p at 267p, Lloyds TSB, ahead 21.5p at 541p, and Brambles, up 6.5p to 196.5p.

The biggest fallers were Corus, down 2.25p at 26.5p, Schroders, off 25p at 580p, Boots, off 23p at 569p and Old Mutual, 3.5p lower at 87.75p.