April 28 (Reuters) - UK's FTSE 100 edged higher on Tuesday, on track to end a six-day losing streak, after BP's stronger-than-expected first-quarter profit lifted energy stocks, eclipsing persistent geopolitical tensions.
The blue-chip FTSE 100 index rose 0.4% to 10,367.61 points by 1019 GMT, while the midcap FTSE 250 slipped 0.2%, down for a fourth day in a row.
-
BP shares rose 3.1% after its first-quarter profit more than doubled year-on-year. Rival Shell added 2.3%, with both offering the biggest boost to the blue-chip index.
-
Tullow Oil surged 12% after the West Africa-focused independent oil and gas producer forecast annual oil production to come in at the higher end of its outlook range after a strong start to the year.
-
Further aiding energy stocks' advance was an extended rally in crude prices as the stand-off in the U.S.-Iran war persisted.
-
"The expectation of higher-for-longer oil prices does outline a bullish case for oil & gas producers," said Joshua Mahony, chief market analyst at Scope Markets.
-
"While some will complain at 'profiteering' from the war in Iran, the fact is that companies in the sector will see profits fluctuate as the price of their underlying commodity changes," Mahony said.
-
Attention later this week will turn to the Bank of England's policy decision, where the central bank is expected to keep rates on hold, with investors watching for any signs of it moving towards raising rates later in the year.
-
Britain's heavy reliance on natural gas has led investors to see its economy as especially vulnerable to the war-fuelled jump in energy prices. The FTSE 100 is down 5% from its late-February record high.
-
British Prime Minister Keir Starmer will host representatives from the BoE at a meeting of the government's emergency response committee focused on the impact of the war in Iran on Tuesday.
Reporting by Medha Singh in Bengaluru; Editing by Vijay Kishore
Source: Reuters