The FTSE 100 index of leading shares closed 21.8 points higher today at 5,429.7.
The impact of rising energy prices saw BG Group shares top the FTSE 100 leaders board, up 16.5p to 539p, while BP shares gained 11.5p to 665p and RD Shell B shares added 21p at 1,916p.
Cairn Energy shares also saw a strong performance, adding 34p at 1,914p.
Elsewhere, Unilever shares jumped 9.5p higher to 586p on press reports the Anglo-Dutch consumer products giant is to scrap its dual stock market listing as part of a review of its corporate structure.
Carnival also lent support, up 75p at 2,983p, as investors welcomed better-than expected third quarter numbers from the cruise operator.
In the US, stocks dropped as Tropical Storm Rita headed toward the Gulf of Mexico, boosting oil prices and causing concern that further disruptions to the region's fuel production will hinder profit growth. The Dow Jones Industrial Average has so far lost 86.62 points in morning trading, or 0.8%, to 10,555.32.
Companies most sensitive to higher energy costs, such as United Parcel Service Inc. and General Motors Corp, retreated.
Crude for October delivery climbed 5.3% this morning to $66.35 a barrel in New York. Petrol futures advanced 9.8% to $1.96 a gallon. Oil is up 46% in the past year, while petrol has surged 54%.
EBay Inc, the largest online auctioneer, declined $0.43 to $36.67. Increased competition will cause the company to spend more on investments in 2006, which may be a drag on the shares.
AT&T Corp, the largest US long-distance telephone company, lost $0.15 to $19.75. The company, which is being bought by SBC Communications Inc, said third-quarter net income will be reduced by $50 million to write down the aircraft leases to Delta Air Lines and Northwest Airlines.
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Matthew West on 020 7484 9893 or email [email protected].IFAonline
The increase in minimum AE contributions has had little impact on opt-out rates - with cessations after April increasing by less than two percentage points, data from The Pensions Regulator (TPR) shows.
Follows string of appointments
Follows acquisition of BlackRock's DC platform
‘In the know’
£116.8m of benefits received by customers