FTSE picks up as oil prices ease

The FTSE 100 Index recovered from a lacklustre start today as investors breathed a sigh of relief at oil prices coming off earlier highs.

With a referendum in the key oil producing country of Venezuela going the way of President Hugo Chavez, some of the earlier pressure on energy prices eased to leave the cost of a barrel of oil below $46 in New York.

As a result, the Footsie was able to push back above the 4300 mark to stand 12.9 points higher at 4314.4 by mid-morning.

Despite the fall in oil prices, Shell led the recovery as investors pondered weekend speculation of a takeover bid from French group Total. Shares rallied 4.25p to 394.75p while BP gained 2p to 489.25p.

Elsewhere on the Footsie leaders board British Airways recovered from a poor start to stand 4.75p higher at 212.5p.

Other blue-chip stocks making progress included Sainsbury’s, which rose 1% or 2.5p to 259p after bolstering its neighbourhood portfolio with a deal to buy 114 northern-based Jacksons Stores outlets.

Outside the top flight, online travel agency Ebookers gained 3.5p to 126p as it encouraged investors with a more positive trading update following its profits warning last month.