FTSE lower as oil sinks A stronger pound, weak commodity prices and National grid weighed on the FTSE, keeping the index in the red across the day. Even Wall Street rebounding from yesterday's heavy sell off hasn't managed to pull the FTSE out of the doldrums.
Oil tumbles to 14 month low
With copper 1.5% lower on global growth concerns and oil under $58.50, the FTSE didn't have much of a chance of joining European counterparts in the black. Oil plummeted on Tuesday, reaching a nadir of $57.23 a 14-month low, before regaining some composure and heading back towards $58.40. US crude dropped to a low of $47.84 its weakest level since September 2017 before grinding higher to $48.55.
Reports of growing inventories and expectations of record output from the US and Russia, combined with fears of reduced demand as the outlook for the global economy deteriorated, has put the bears firmly in control. Whilst OPEC did agree to cut global production by as much as 1%, these cuts will not take effect until next month. However, with the demand outlook worsening, there is a good chance that production cuts just don't go far enough.
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