The London market opened on a low note today as concerns arose that soaring oil prices could curb world economic growth.
The FTSE 100 Index, which hit a three-year high on Friday, was trading eight points off at 5069.6 towards the end of the first hour of business.
UK and continental European stocks moved lower after the cost of a barrel of US light crude for July delivery lifted 68 cents to 59.15 dollars.
Speculation that refiners would fail to keep pace with fuel demand was lifting prices, analysts said.
The news about oil appeared to have offset the market impact of an upbeat end to trading in New York on Friday, with the Dow Jones Industrial Average ending 44.5 points up.
Back in London, oil stocks were doing well on the back of the high crude prices, with Shell the biggest beneficiary up 6.75p to 523.25p.
BP gained 6.5p to 593p and BG Group lifted 4.25p to 453.25p.
Fuel dependent British Airways was not doing so well, lifting to fourth in the FTSE fallers with a 3.25p decline to 274.25p.
Elsewhere, shares in department store group Beatties raced 18% ahead after it said it was in talks with rival House of Fraser about a takeover by the latter.
Shares jumped 21.5p to 137.5p.
References: EGi News 20/06/05
