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MARKET REPORT: Oil price falls as Saudis react to weak demand By John Abiona Updated: 22:00, 8 January 2024 e-mail View comments The price of oil tumbled after one of the world’s top producers cut export prices to the lowest level in more than two years. Saudi Arabia reduced the official selling price of Arab Light crude more than expected amid rising supply and competition with rivals. Industry experts said the country’s latest move is designed to defend its market share amid concerns about weak demand. The move sent the oil price lower on global commodity markets as it more than offset worries about conflict in the Middle East – at least for now. Brent crude – the international benchmark – fell more than 4 per cent to below $76 a barrel. Price cut: Saudi Arabia reduced the official selling price of Arab Light crude more than expected amid rising supply and competition with rivals The move was felt on the stock market in London where BP fell 2.6 per cent, or 12.4p, to 461.45p, Shell lost 3.1 per cent, or 80p, to 2491p and Harbour Energy shed 2.5 per cent, or 7.4p, to 294.8p. The wider market continued its subdued start to the year with the FTSE 100 barely shifted, inching up 0.06 per cent, or 4.58 points, to 7694.19. The FTSE 250 fared slightly better, rising 1 per cent, or 183.41 points, 19393.8. Chris Beauchamp, chief market analyst at IG, said: ‘After staging a late rally to end the year, the FTSE 100 found itself unable to make further gains, but the index has weathered the losses for BP and Shell reasonably well.’ Mining stocks were also in retreat as concerns about the global economy and outlook for interest rates hit metal prices. Endeavour Mining, whose chief executive Sébastien de Montessus was fired last week for alleged serious misconduct relating to irregular payments of close to £5million, fell 2.4 per cent, or 37p, to 1540p. RELATED ARTICLES Previous 1 Next Uplift at trading firm CMC Markets gives Tory peer Lord... Boost for BAE as Germans finally give the green light to... Boeing shares hit as jets are grounded: Plane-maker's... Pamela Anderson adds sparkle to Pandora as jewellery sales... Share this article Share HOW THIS IS MONEY CAN HELP How to choose the best (and cheapest) stocks and shares Isa and the right DIY investing account Anglo American slid 1.3 per cent, or 24p, to 1846.8p and Glencore lost 1.3 per cent, or 5.9p, to 457.1p. Stock Watch - Argo Blockchain Argo Blockchain issued new shares on the cheap in a bid to shore up its finances. The bitcoin miner raised £7.8million by placing more than 38m shares at nearly 21p. But this represented a discount of around 24 per cent to the cryptocurrency miner’s closing price on Friday. The company also revealed its mining revenue hit £5million in December last year, up 25 per cent on the previous month. Shares, which peaked at 284p in February 2021, slumped 18.9 per cent, or 5.13p, to 22p. Drax gained 9.5 per cent, or 46.7p, to 536.4p as investors welcomed reports its net zero carbon plan is set to be waved through by the Government. The FTSE 250 renewable power firm wants to install two units at its North Yorkshire power station that will help it remove 8m tonnes of carbon dioxide from the atmosphere every year when up and running. Drax is hoping Energy Secretary Claire Coutinho will approve its plans later this month. The group generates around 4 per cent of the UK’s power and believes its role as a biomass generator is crucial in ramping up efforts to turn to renewable energy. The company has attracted criticism, however, amid doubts over just how ‘green’ it really is. Barclays analysts said there are ‘reasons for potential optimism in the property sector even without the market dramatically improving’. The bank upgraded its rating on Crest Nicholson as it expected the housebuilder to turnaround its fortunes having underperformed compared to the rest of the industry last year. Shares surged 5.3 per cent, or 11.4p, to 227.4p. Vistry gained 6.8 per cent, or 61.5p, and 965.5p and Taylor Wimpey added 2.7 per cent, or 3.85p, to 148.25p. Polling firm You Gov is hoping to strengthen its ability to analyse complex survey data after it bought Chicago-based Knowledge Hound. But You Gov shares slid 0.9p, or 10p, to 1135p. Gama Aviation confirmed it is in talks to buy Specialist Aviation Services, a UK-based business that provides helicopter emergency medical services and aircraft repairs and maintenance works. Gama hopes the acquisition will bolster its special mission division. Shares, however, fell 2.1 per cent, or 2p, to 93p. Melrose topped the blue-chip index after an upbeat note from analysts at Peel Hunt. Shares in the manufacturing giant rose 4.3 per cent, or 24p, to 581.4p. Rolls-Royce added 2.9 per cent, or 8.6p, to 305.2p after Barclays upgraded the jet engine maker’s rating. DIY INVESTING PLATFORMS Easy investing Stocks & shares Isa £1.50 fund dealing 0.25% fee on fund holdings Investment ideas Free fund dealing Free fund dealing 0.45% account fee capped for shares Flat-fee investing No fees From £4.99 a month Trade shares and funds for £3.99 Social investing Social investing Share investing 30+ million global community Model portfolios Investment account Free fund dealing Free financial coaching Affiliate links: If you take out a product This is Money may earn a commission. 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