The FTSE 100 index has been more than a little bit volatile recently, with some degree of downturn having taken place over recent weeks in the light of the continual concern over the state of the economy in the United Kingdom, and the unprecedented instability of the government which has been changing its top cabinet regularly lately.
Over the past day, however, the FTSE 100 index has suddenly rocketed, rising to 7195 points as the energy sector results begin to demonstrate their continued strength.
For the past year and a half, energy products have been under close scrutiny by governments, traders and investors alike as supply chain shortages in 2021 caused by government lockdowns were replaced by geopolitical conflict and sanctions on one of the world’s largest oil producing nations.
Demand remained high whilst supply was more scarce, hence the value of the thick black stuff being on the minds of many.
Publicly listed British oil giant BP announced yesterday that it had made $8.2 billion in profits for the third quarter. Yes, the British government is talking about attributing a windfall tax to energy companies, but the numbers are there, standing proud, and therefore a measure of good performance regardless of the tax implications.
Whilst BP shares remained relatively flat, the FTSE 100 index jumped significantly as key components which perform well are often an indicator of overall strength within the top companies in the London listed markets.
Today’s performance on the FTSE 100 index constitutes a five week high, and perhaps as can be expected, the raw materials miners included in the FTSE 100 index had all performed well, bolstering BP’s stellar profit results.
As an interesting compliment to the mining and oil bonanza, food delivery company Ocado’s shares jumped 20% after it announced a further push into Asia with a tie-up with the retail arm of South Korean conglomerate, Lotte Group, Ocado being a FTSE 100 component.
Looking at BP’s giant profits in greater detail, the company’s third quarter profit figure of $8.2billion is a massive increase from $3.3bn last year, as high crude and gas prices buoyed its upstream business. The markets may have considered that a potential windfall tax may stall its progress, however any $800 million would do nothing to slow its momentum.
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