Oil stocks take a pounding

Shell and BP took a pounding on the London market today as hopes that Opec may cut production faded.

After touching a two-month high of 5366.4 early in the day, the Footsie closed 36.4 points down at 5240.7.

Opec says unless non-Opec producers also agree to cut output it will not go ahead with its plans, leading to further falls in the price of crude.

Both Shell and BP tumbled by over 6% after Opec's intentions were revealed, pushing a previously healthy FTSE 100 Index into the red.

BP ended the day down 36p at 530p, while Shell plunged 34p to 484p.

Other stocks in the oil and energy sector were sent reeling with Enterprise Oil down 19½p to 475½p, and gas pipeline group Lattice off 7p to 151½p.

Centrica was also down, 11p to 214p while exploration business BG Group ended the day off 12½p at 255p.

The dramatic end to the day came after another relatively good morning in the City with a strong showing from blue-chips in the telecoms sector.

Cable & Wireless cheered investors with plans for a share buyback and special dividend that should see £1.7bn given back to shareholders.

The group, which also reported half-year figures in line with expectations, closed up 15p at 361p.

BT also fared well, climbing 20½p to 341p, while Vodafone edged up ¾p to 180¾p.