CHEMICALS group ICI and British Airways benefited from a fall in oil prices last night as hopes grew that Opec would sanction an increase in production.
A proposal by Saudi Arabia to lift output by six per cent won public backing from the United Arab Emirates yesterday, driving the cost of crude down to $40.60 a barrel in New York.
The FTSE 100 Index joined a rally by world markets, climbing 30 points after Brent prices reached $37.08 in London.
Among companies to benefit were ICI and British Airways, which on Monday warned that higher fuel prices would cost it an extra £150m this year.
Analysts said the next fortnight would be crucial as Opec ministers are due to meet informally this weekend in Amsterdam ahead of a full ministerial meeting due to take place in Beirut on June 3.
Most Opec members are running at full capacity and it is thought that only Saudi Arabia and the United Arab Emirates would be able to increase output.
The oil cartel has previously agreed not to lift production above 23.5 billion barrels a day, but traders believe current output is two billion barrels higher than that.
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