Brent crude set to tank as markets face oil glut
The price of oil will plunge by more than a quarter by the end of next year as production soars, analysts have warned.
A barrel of Brent crude, which yesterday was trading at around $83, is expected to fall to $60 in late 2025.
Analysts at investment bank Citi said increased output from the Organisation of the Petroleum exporting Countries and its allies will result in an extra 2.5m barrels a day by September.
Max Layton, an analyst at Citi, said there was likely to be a ‘meaningful surplus’ by the end of next year – just days after the International energy Agency warned there will be an ‘unprecedented’ surplus as demand peaks in 2029 and then shrinks.
Shares in BP dipped 1.1pc, or 4.90p, to 460p. while Shell dropped 0.8pc, or 20.5p, to 2724p.
The FTSE 100 fell 0.6pc, or 51.81 points, to 8163.67 and the FTSE 250 was down 1.5pc, or 301.45 points, to 20,195.95.
Halma was the biggest bluechip riser after the safety equipment maker’s sales climbed 10pc to a record £2.03bn in the year to the end of March while profits increased 12pc to £424m. Shares surged 13.4pc, or 314p, to 2664p.
Fuller’s reported higher annual results as it cashed in on strong food and drink sales. Revenue rose 7pc to nearly £360m in the year to March 30 while profits increased 40pc to £14.4m. Food sales rose 14.5pc while drink sales were up 9.8pc. Momentum has continued in the new financial year with group sales up 4.4pc in the 10 weeks to June 8. Shares added 1.1pc, or 8p, to 728p.
Government contractor Capita, which collects the BBC licence fee and runs the London congestion charge, hiked its mediumterm sales target, lifting it 2.7pc, or 0.38p, to 14.38p.
Car dealer Motorpoint – down 1.8pc, or 2.5p, to 140p – laid bare the impact of the ‘most difficult’ year in its history amid a slump in prices and high interest rates.
Revenues plunged by a quarter to £1.1bn in the 12 months to the end of March while its losses widened from £300,000 to £10.4m.
Caroline Waddington is to leave UBS to be the finance boss at wealth manager St James’s Place, replacing Craig Gentle in the second half of this year. St James’s fell 1.9pc, or 10p, to 523p. Trident Royalties is to be bought by a company that manages mining royalty assets in Australia for £144m. The AIM-listed firm accepted Deterra’s offer of 49p a share. The bid raised the stock 20pc, or 8p, to 48p.
Payment service firm Paypoint is closing in on a key milestone – £100m profit by the end of March 2026. Its profits rose by a third to £81.3m in the year to the end of March. Paypoint gained 7.2pc, or 41p, to 608p.
Security and surveillance firm Petards is to buy UK-based critical communications provider Affini Technology Group for £2.8m, if a bank-related condition is met by June 27.
The update came alongside annual results that showed sales fell 13pc to £9.4m in 2023.
It lost £1.2m last year and fell 13.6pc, or 1.1p, to 7p.