The FTSE 100 has continued its downward spiral from yesterday falling over 90 points to 7,405.82 just after midday.
Whilst a large drop compared to the early week highs, other factors were at play according to ETX Capital analyst Neil Wilson: “The FTSE 100 is lower but not by much if you strip out the ex-dividend factors, which have conspired to clip 41 points off the index.”
Brent Crude broke $53 a barrel reaching $53.15 just after midday.
The current rise in price is down to Saudi commitments to cut exports to Asian markets and a global decline in inventories.
Bjarne Schieldrop, chief commodity strategist at SEB said: “The major event now going forward is the Middle East and Asian refineries rushing back into operation and consuming more crude, just as Saudi Arabia says it will cut September deliveries to Asia”.