Hopes of a deal to freeze or reduce oil output helped to stem losses on the FTSE 100 Index on Monday.
A buoyant performance by miners and oil majors propped up the top flight index, which was four points adrift at just over 6890.
Small-cap indices were also in the red, but the UK-focused FTSE 250 picked up 28 points to 18044.
The pound rallied modestly as markets took heart from G20 pressure on the UK to water down a potential EU exit.
The price per barrel of Brent crude and US light crude rose more than 2% amid optimism about the outcome of an unofficial OPEC meeting later this month.
Mike van Dulken at Accendo Markets said: "it looks to be an oil price spike that is really helping sector sentiment and of course the FTSE heavyweight oiI majors.
"The driver remains unclear, but optimism of proper cooperation between Russia and Saudi Arabia may be gaining traction to offset global glut fears ahead of this month’s much hyped unofficial OPEC-led production freeze meeting in Algeria. We’ve been here before though."
British service sector purchasing managers' index data returned to positive territory, but business confidence stayed well below its long-run trend.
Among small-cap stocks, Frontera Resources Corporation (LON:FRR) ticked up 21% to 0.11p after the oil & gas explorer and producer upgraded the gas potential and reported progress at its operations in Georgia.
Plutus PowerGen PLC (LON:PPG) sparked 10.6% to 1.3p as the stand-by electricity generation developer reported lower annual losses and higher revenues.
But shares in Pantheon Resources Plc (LON:PANR) fell by a third to 100p after the US oil explorer said it was temporarily stopping drilling work on a well in Texas.
Central Asia and Caspian-focused oil group Tethys Petroleum Ltd (LON:TPL) was also down a third at 1.25p on news of problems with an investment agreement.
Oil and gold on the rise – 9:45
Crude oil prices were in plus territory in what will likely be a quieter day, given the Labor Day public holiday in the United States.
In London trading Brent jumped about 5% to trade at around US$48.90 while West Texas Intermediary futures were 3.8% higher at US$46.24 per barrel.
Elsewhere, a weak US dollar provided a boost for the price of gold, with the December futures contract up US$3.30, or 0.25%, at US$1,329.90 an ounce in electronic trading.
The greenback retreated as Friday’s US jobs report suggested the Fed would be in no hurry to raise interest rates.
Monday's top stock market movers https://t.co/4wLVXNnZWo
— Proactive News Desk (@UK_Proactive) September 5, 2016
Opening snapshot at 8.15am
The FTSE 100 opened up seven points to 6,901 this morning.
The top winner was Mondi (LON:MNDI), up 1.5% to 1,578p.
Royal Bank of Scotland Group (LON:RBS) was the biggest loser at 201p, down 1.5%.
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Preview at 6.56am
FTSE 100 is called to open a shade lower as what looks like a fairly busy trading week begins and after the key US jobs report on Friday failed to meet expectations.
The employment report for August showed that 151,000 jobs were created last month (August), which was fewer than the around 175,000 many had expected.
It has meant traders are lowering expectations for a Fed interest rate rise on September 21 given the weaker number and general economic malaise across the globe, and therefore are less worried over a tightening of monetary policy stateside.
The blue-chip FTSE 100 index however soared on Friday and ended up 148 points, or 2.2%, at 6,894 – standing nearly 600 points higher of its levels on June 23, the eve of the Brexit poll result.
Today, financial spreadbetters at IG Index are calling it to open 2.5 points lower.
In Asia overnight, the US jobs number and the possible implications have given shares a boost. The Nikkei 225 in Japan is up 1.73% to 23,671 and the Shanghai Composite Index is 0.22% higher at 3,074.
On Wall Street on Friday, the Dow Jones added 0.39% to close at 18, 491, while the S&P500 gained 0.42% to stand at 2,179. The tech heavy Nasdaq added 0.43% to close at 5,249. New York is closed today for Labor Day.
On the corporate front today, we have Dechra Pharmaceuticals PLC (LON:DPH) and Hunting Plc (LON:HTG), while on Tuesday, the UK housing market is thrown centre stage with a trading statement from Berkeley Group Holdings PLC (LON:BKG) and results from Redrow plc (LON:RDW).
City headlines
'Britain can leave EU and still thrive, says Stiglitz'
'Hinkley Point deal out of date and too expensive, says energy chief' - Daily Telegraph
'Brexit: Japan warns firms may move European HQ out of Britain' - BBC
'Formula One supremo Bernie Ecclestone insists he will remain top dog even if the sport gets new owners' - Daily Mail
'May rejects shake-up of EU migrant rules' - Financial Times