Sector movers: Energy stocks and airlines lead advance

26th Jan 2015 18:45

Energy stocks finished the session higher after the secretary general of the Organisation for Petroleum Exporting Countries (OPEC) warned that the price of crude could rebound as high as $200, if circumstances forced the hand of producers, way higher than the record-high of $147 a barrel it hit in 2008.He said: "maybe we will go to $200 if there is a real shortage of supply because of the lack of investment."Front month Brent crude futures ended the day just slightly lower after dropping much more in the immediate aftermath of Sunday's elections in Greece. At the close front-month Brent crude futures were 0.226% lower at $48.68 per barrel.To take note of, traders may also have been keeping their cards close to their chest ahead of Wednesday US Federal Reserve policy meeting.In a note sent to clients on Friday Barclays Research detailed the growing glut of oil being stored offshore, which could act as a brake on any recovery in the price of crude later in the year.Speaking on Saturday at the World Economic Forum in Davos, Switzerland, Bank of England Governor Mark Carney said markets may be underestimating for how long oil prices might stay low - thanks to the on-going technology revolution in energy.Shares of the major airline groups performed well after it became known that IAG, the owner of British Airways, had carried out a third attempt over the weekend to take-over Irish carrier Aer Lingus. The owner of BA offered Aer Lingus €2.50 a share in cash plus a dividend of €0.05 a share, up from the previous pitch of €2.40 in cash and €2.30 before that.easyJet also did well ahead of the trading statement which the firm is set to release tomorrow.Flybe was the odd man out. The company's shares were hit hard by the firm's admission that the oil price slump would do little to ease costs because the budget carrier is locked into a contract for the remainder of 2015.While rival airlines benefit from cheaper jet fuel prices, Flybe will pay considerably over the odds. The firm is locked at $129 a barrel for 97% of its fuel intake until March, when its current fiscal year ends, whereas at present a barrel of Brent crude costs just $48.Top performing sectors Forestry & Paper 12,688.66 +2.43%Oil Equipment, Services & Distribution 15,803.12 +1.93%Oil & Gas Producers 7,420.19 +1.50%Industrial Transportation 2,882.63 +1.46%Electricity 9,010.37 +1.19%Bottom performing sectors Food & Drug Retailers 3,241.29 -1.62%Fixed Line Telecommunications 4,810.93 -1.23%Construction & Materials 4,444.25 -0.80%Mobile Telecommunications 5,379.31 -0.47%Aerospace and Defence 5,018.37 -0.44%