On Tuesday, British stocks soared, with oil shares enjoying gains after reports that key oil producers have already agreed to freeze their output.
The FTSE 100 great to 5,833.46 or 0.2% and quickly found themselves in the red. Stocks of energy giants Royal Dutch Shell PLC and BP PLC came off session highs amid a report that the energy minister of Qatar told that the country has already agreed to freeze its production along with Russia, Venezuela and Saudi Arabia. BP shares soared 2.6%, while Shell grew 2.4%.
British stocks went up earlier, as energy ministers of Russia and Saudi Arabia met in Qatar in order to discuss probable oil output. That gave grounds to speculations regarding a possible oil freeze or cut.
As for prices for Brent crude oil, the global benchmark had gains after the meeting mentioned above, but they were still traded at $34.28 – 2.7% higher, while Texas Intermediate crude oil gained 2.4% or $30.10 a barrel.
By the way, oil prices have been making their way to the bottom for the last two years. Nevertheless, OPEC withstander numerous calls to cut production in order to address issues of oversupply throughout the world.