Sector Movers: Oil and retail stocks edge FTSE 100 higher

At 16:02 BST, the FTSE 100 was trading up 0.37% or 25.96 points higher at 7101.22 buoyed by oil and gas related stocks as the crude oil markets strengthened on perceptions of the supply glut easing marginally.

US Energy Information Administration (EIA) recently noted that output from the country's seven shale regions was likely to fall by 57,000 barrels per day (bpd) in May. The forecast comes close on the heels of declining rig counts put out by Drillinginfo and Baker Hughes thereby bolstering the oil price.

The Brent front month futures contract was trading up 2.34% or $1.37 at $59.80 per barrel, while WTI, the preferred US benchmark, was up 1.61% or $1.61 at $54.90. The positivity filtered through to oil and gas stocks with blue chips BP and Shell (’B’ shares) up 1.03% and 1.80% respectively.

Continuing with the sector, Tullow Oil (up 8.38%), Premier Oil (up 7.67%) and Cairn Energy (3.60%) were among the top 10 risers of the session. They were joined by oilfield services and engineering group Amec Foster Wheeler (up 4.29%) as it traded higher on being awarded $73 million contract from to provide maintenance and project support for the oil major’s North Sea operations.

The other story of the session belonged to the retail sector, with Next climbing the FTSE 100 index in early trade after JPMorgan lifted its rating on the company to ‘overweight’ from ‘neutral’. JD Sports (up 5.79%) posted a rise in revenue of 25% to £1.52m, while operating profit jumped 23% to £102.2m and pre-tax profit and exceptionals leapt 22% higher to £100m, beating a consensus forecast of 5%. Rival Sports Direct (up 3.80%) also posted a rise of 3.80% taking in the wider feel good factor, as its founder Mike Ashley, the current owner of Newcastle United Football club, sees his affairs come under scrutiny from parliament.

Supermarket Sainsbury's was trading up 3.53% due to a technical move higher, according to City traders, in what was described as a "very squeezy" market during a positive session for retailers. Finally, mining, metals and industrial minerals stocks continued to claw back heavy losses sustained on Monday.

Top Five Sectors:

Oil Equipment, Services & Distribution 4,908.97 +120.90 +2.53%
Industrial Metals & Mining 2,042.62 +36.44 +1.82%
Food & Drug retailers 3,421.93 +48.69 +1.44%
Oil & Gas Producers 7,597.87 +104.38 +1.39%
Mining 14,173.39 +158.55 +1.13%