Talk of talks over the global oil supply glut gave a slicker look to London shares on Tuesday, continuing Monday's rally.
The FTSE 100 Index climbed 16.77 points to 5841 on reports of high-level discussions between Russia, Saudi Arabia and other Opec members, sparking hopes that they will freeze or cut the flow of oil into the market.
Brent crude rose 2.6% to US$34.3 a barrel and US light crude bounced back above the US$30 level with a 1.4% jump to US$30.15.
Brenda Kelly at London Capital Group said: "Apparently, oil below $30 a barrel is weighing significantly, even on most competitive producers’ finances.
"It appears oil producers are keen to collaborate to prevent the oil market from further decline and even the most stubborn, Saudi Arabia, is giving up on its sanguine fight for more market share."
There has been market speculation about potential consolidation in oil service companies following the fall in the oil price, which has forced oil majors to cut investment in projects and plant.
Berkeley Energia (BKY) ticked up 0.25p to 22.5p as rigs started turning on Zona 7 of its Salamanca uranium project in western Spain, kicking off a major exploration programme.
The FTSE 100 is set to build on the gains made over the last two trading session when it opens later.
The spread betters are predicting it will rise 26 points to 5,850.28 on open, adding to the momentum that has seen the index of blue-chip stocks advance almost 300 points since the start of play Friday.
Yesterday’s rebound was aided by comments from European Central Bank president Mario Draghi that hinted at further support for Europe’s lacklustre economy.
China also had a massive impact on sentiment as it resumed trade after the lunar new year lay-off in subdued mood, eschewing the volatility that has been its hallmark.
This and some soothing comments from the central bank in support of the yuan made for an all too rare day of gains.
Overnight in Asia the mood was positive with the Shanghai Composite up 2.4%, the Hang Seng in Hong Kong ahead 1.3% and Japan’s Nikkei 225 nudging up 0.2% (after a stupendous 7% rise on Monday).
Here in the UK the big number to look for is actually a rather small one. Economists reckon cost price inflation will move 0.1 percentage points to 0.3% when the data is reported later.
The retail price index, on which pay rises are based, is set to advance to 1.4% from 1.2%, according to CMC Markets.
The big corporate news will be provided by Anglo American which delivers annual results later that will reveal in all its gory detail the rather fragile state of the commodities market.