By Neil Hume and Robert Orr
Published: July 6 2007 09:12 | Last updated: July 6 2007 20:04
The FTSE 100 ended the week on a positive note thanks to a powerful performance from the heavyweight oil sector.
BG Group, up 2 per cent to 829p, BP Group, 1.1 per cent stronger at 610½p, and Royal Dutch Shell, 2.5 per cent higher at £21.67, were among the best blue chip performers as the price of Brent crude rose to an 11 month high of $76 a barrel.
Shell and BP drew further support from Deutsche Bank, which lifted its recommendation on both companies to “buy”.
The broker said Shell and BP should command stock market ratings of 13-14 times earnings compared with the present 10 because the price of crude was likely to stay stronger for longer.
“There are multiple reasons for believing that, against a backdrop of continued robust economic growth, the long run price of crude is unlikely to see a sharp pull back any time soon,” Deutsche said.
The rising crude price also helped BHP Billiton, the mining company that has a large oil and gas business. Billiton shares rose 3.7 per cent to £15.16.
THE ABOVE IS AN EXTRACT FROM THE FT ARTICLE
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