London's top flight stayed firmly in the black on Thursday amid speculation about a possible supply cut by oil cartel Opec.
The FTSE 100 Index was 56.86 points up at 5894 after the price of a barrel of Brent crude rose above US$35 in early trading, although it later dropped back a touch to US$34.74.
There were rumours on social media site Twitter about a possible crude output cut and analysts also said another rate rise by the Federal Reserve in 2016 was getting less likely.
Rating agencies have suggested that some Opec members may not be able to sustain current levels of production as low oil prices put pressure on their national finances.
Alastair McCaig at spread-betting firm IG said: "Regardless of how reluctant Saudi Arabia might be to change the current oversupply of oil to the market, the other members of OPEC and several outside of the consortium are reaching breaking point."
The speculation lifted oil stocks, with Tullow Oil (LON:TLW) spurting 7.57% to 173.4p and BP (LON:BP.) ticking up 9.9p to 342.25p.
Miners were also on the up, with Anglo American (LON:AAL) increasing 12% to 306.75p, Lonmin (LON:LMI) rising 12.3% to 52.5p and Glencore up 5.7% at 90.85p.
The Bank of England's monetary policy committee voted unanimously to keep UK interest rates at 0.5%, with economists saying a rate cut was now looking more likely than a hike.
Adam Chester, head of economic research at the commercial banking arm of Lloyds Bank, said: “As expected the Bank Rate remains at 0.5% and there is significant risk that it will remain unchanged for the rest of this year.
"Recent volatility in international markets, some signs of a softening in activity and the sharp fall in inflation continue to argue against a rise."
Back in the market, AstraZeneca (LON:AZN) was on its sickbed with a 221.5p loss to 4190.5p as it forecast an earnings decline this year as its Crestor cholesterol drug faces more US competition.
But Royal Dutch Shell (LON:RDSB) spurted 83.5p to 1521p as investors welcomed full-year and fourth quarter earnings towards the top end of guidance.
Vodafone (LON:VOD) drifted 2.05p to 210.85p as it confirmed annual guidance and reported a 1.4% rise in group organic service revenue against 1.2% in the second quarter, its sixth quarter of improvement in a row.
Elsewhere, shares in Amur Minerals (LON:AMC) rallied 0.1p, or 1.7%, to 6p as it doubled its drill capacity to speed up exploration of the Kun Manie nickel deposit in Russia.
Asia focussed ticketing systems group Galasys (LON:GLS) said it was likely that certain one-off exceptional items relating to an ongoing litigation would cause a fall in 2015 pre-tax profits and earnings, hitting its shares by 2.25p, or 13.6%, to 14.25p.
Leisure park ticketing firm Accesso Technology (LON:ACSO) strengthened 45p to 897.5p after saying trading was comfortably in line with hopes.
Bushveld Minerals (LON:BMN) softened 0.12p to 3.12p despite saying a study at its 64%-owned Mokopane vanadium project in South Africa confirmed the scheme as a market leader.
LONDON OPEN
Markets were back on the march on Thursday, with commodity and oil stocks leading the way, as crude prices edged above US$35 a barrel.
The FTSE 100 Index gained 64.07 points to 5901 after the price of a barrel of Brent crude lifted 0.05% to US$35.06, while West Texas Intermediate put on 0.6% to US$32.48.
Tullow Oil (LON:TLW) was leading the risers with a 9.37% spurt to 176.3p. Anglo American (LON:AAL) increased 7.9% to 295.35p, Lonmin (LON:LMI) rose 8% to 50.5p and Glencore was 7.5% up at 92.4p.
But Connor Campbell at spread-betting firm Spreadex said: "Yet Brent crude has already begun to threaten to fall through that $35 per barrel level, so how long the morning’s impressively positive trading can last is another matter entirely."
The Bank of England was set to provide the interest on the economic front with its Super Thursday rate decision and quarterly inflation report.
Back in the market, AstraZeneca (LON:AZN) was on its sickbed with a 177.5p loss to 4234.5p as it forecast an earnings decline this year as its Crestor cholesterol drug faces more US competition.
But Royal Dutch Shell (LON:RDSB) spurted 59p to 1496.5p as investors welcomed full-year and fourth quarter earnings towards the top end of guidance.
Vodafone (LON:VOD) drifted 1.55p to 211.35p as it confirmed annual guidance and reported a 1.4% rise in group organic service revenue against 1.2% in the second quarter, its sixth quarter of improvement in a row.
Elsewhere, shares in Amur Minerals (LON:AMC) rallied 0.35p, or 5.9%, to 6.25p as it doubled its drill capacity to speed up exploration of the Kun Manie nickel deposit in Russia.
Asia focussed ticketing systems group Galasys (LON:GLS) said it was likely that certain one-off exceptional items relating to an ongoing litigation would cause a fall in 2015 pre-tax profits and earnings, hitting its shares by 2.5p, or 15.15%, to 14p.
MARKET PREVIEW
In case you missed it, the oil price seems to be behind pretty much every stock market move at the moment; and so it is today.
So, as the price of crude has rallied sharply, London’s shares are expected to open much stronger.
Changing hands above US$35 for the second time in two weeks, Brent crude is up more than 7%. West Texas Intermediary crude, meanwhile, gained over 8% to US$32.50.
It comes amid hopes for talks between Russia and OPEC over possible production cuts, and as the US dollar weakened (which makes oil cheaper for international buyers).
Wall Street equities rallied. The Dow Jones added some 180 points, 1.13%, to close at 16,336 while the S&P 500 rose 0.5% to 1,912. But, the Nasdaq Composite moved nearly 0.3% lower to 4,504.
In Asia, the Shanghai Composite rose by 1.6% to 2,782 while Hong Kong’s Hang Seng added 1.4% to 19,254.
Japan’s Nikkei was down 0.85% at 17,044.
Australia’s ASX 200 advanced by more than 2% to 4,980.
And London’s FTSE 100 is seen nearly 100 points higher this morning, with IG Markets calling the blue-chip benchmark at 5,934 to 5,939.