News

CATEGORY: SECTOR REVIEW

Sector movers: Oil up, autos down

Fri 22 Jun 2018

LONDON (SHARECAST) - (Sharecast News) - Oil-related stocks led the charge late on Friday, while the auto sector was the big faller.
Energy shares rallied, with Royal Dutch Shell and BP both gushing higher to lift the FTSE 100, as oil prices were given a big boost when the Organisation of Petroleum Exporting Countries and Russia agreed on a 1m barrel a day increase in their combined level of output.

However, due to the inability of several member countries to increase their output, in reality the agreement equated to around a 600,000 b/d boost, according to reports citing one of the delegates present.

Commenting on the results of the meeting, analysts at Barclays Research said that if Iran, Venezuela, Libya and Nigeria were excluded then the net increase resulting from the deal might reach as high as 770,000 barrels a day.

"Based on our previously published balance, we expect OPEC crude output to increase by about 700 kb/d by the end of the year, assuming Libya's oil output can rebound to 900 kb/d," Barclays Research added.

"This agreement is consistent with those expectations, though we see a slight upside risk in Saudi, UAE, and Kuwaiti output expectations compared with our balance."

The automobiles & parts sector slumped after US President Donald Trump threatened to increase trade barriers on European cars after the EU introduced tariffs on 2.4bn worth of US goods.

At midnight the night before the EU levied retaliatory tariffs products including bourbon whiskey, motorcycles, jeans and orange juice, with European Commission president Jean-Claude Juncker saying on Friday the EU "will do what we have to do to rebalance and safeguard" the bloc.

Then on Friday Trump tweeted: "Based on the Tariffs and Trade Barriers long placed on the U.S. and it great companies and workers by the European Union, if these Tariffs and Barriers are not soon broken down and removed, we will be placing a 20% Tariff on all of their cars coming into the US. Build them here!"







Top performing sectors so far today

Oil Equipment, Services & Distribution +4.86%
Oil & Gas Producers +3.55%
Leisure Goods +3.07%
Mining +2.74%
Food & Drug Retailers +2.23%

Bottom performing sectors so far today

Automobiles & Parts -2.99%
Electronic & Electrical Equipment -1.60%
Software & Computer Services -0.11%
 
Archived Stories

15 Nov Sector movers: Banks, builders, utilities cower as govt wobbles over Brexit
14 Nov Sector movers: Electricity up, oil engineers down
11 Nov Sunday share tips: Halfords, Base Resources, IP Group
09 Nov Sector movers: Miners and oil producers in the red
08 Nov Sector movers: Supermarket stocks up, mobile telecoms lose signal



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