Oil shares suffer to leave FTSE in red

A negative response by oil majors to falling crude prices kept a lid on gains by top flight shares today.

Shares in BP, Shell and BG Group fell as the price of a barrel of US light crude dipped by more than a dollar to just over $49 a barrel.

The falls prevented the FTSE 100 Index from building on earlier progress during the afternoon, leaving it 17.8 points ahead at 4893.2 by the close.

However, the FTSE 250 Index roared ahead by 63.8 points to 6807.2 after US sports tycoon Malcolm Glazer seized control of Manchester United with a £790.3m (€1.15bn) takeover bid.

The oil news boosted fuel-hungry companies such as British Airways, which ended the day third in the Footsie risers with a 7.5p gain to 254p.

Other airlines and aerospace firms also benefited, with easyJet lifting 1% or 3.75p to 239p, Rolls-Royce advancing 1.75p to 252.5p and BAE Systems adding 0.75p to 259.75p.

The declining crude price had the reverse effect on oil and gas stocks, however, with Shell shedding 2.5p to 468.5p, BG Group down 7p to 406.75p and BP losing 2p to 535p.

The biggest Footsie risers were R&SA, up 4p to 77.5p, William Hill 18p ahead to 535p, BA adding 7.5p to 254p and BOC lifting 27p to 1000p.

The largest fallers were International Power down 7.25p to 180.5p, Morrisons off 3.75p to 186.75p, Corus weakening 0.75p to 42.5p and BG Group retreating 7p to 406.75p.