Sector movers: Energy stocks hammered as crude falls, risk appetite declines

Every sector on London's stock market was either flat or trading in the red on Tuesday afternoon, with energy stocks bearing the brunt of the sell-off as risk appetite collapsed.

"Rising share prices are few and far between on the FTSE 100 this afternoon, thanks to a heady cocktail of worries that has sent investors scurrying for safe havens," said analyst Chris Beauchamp from IG.

Blue-chip oil and gas producers such as Tullow Oil and BG Group were falling around 6% each as Brent crude prices declined 2.4% to $57.15 a barrel on the back of a stronger US dollar.

Meanwhile, data on crude stockpiles Stateside due over the coming days is forecast to show that inventories rose for the ninth week in a row.

Others in the sector such as BP, Ophir Energy and Genel Energy were trading with heavy losses.

Even Cairn Energy weakened despite saying that full-year operating losses narrowed 57.6% to $372.3m in 2014. The FTSE 250 group said that it had undertaken "a fundamental rationalisation of the business" that means it can "operate effectively in the current low oil price environment".

Oil and gas services stocks were also out of favour, including Wood Group, Amec Foster Wheeler and Petrofac.

Investors were also likely digesting the news that US oil major Chevron is to raise asset sales by 50% to $15bn and cut new spending over the next two years in response to the recent plunge in oil.

Top performing sectors so far today

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Bottom performing sectors so far today
Oil & Gas Producers 6,888.94 -3.46%
Oil Equipment, Services & Distribution 17,716.75 -3.08%
Mining 13,939.10 -2.90%
Electricity 8,889.83 -2.27%
Beverages 14,665.29 -2.04%