(Sharecast News) - Big Oil lent its weight to an upside move for the FTSE 350 as the benchmark rebounded from the downdraft registered during the previous week - although some analysts in the City remained wary.
"Oil has had a good day too, with the rebound from oversold levels gaining strength following the drop in inventory data," said IG chief market analyst Chris Beauchamp.
"A year of two halves has seen oil rally and then drop back, and with no sign of any cut in output from OPEC and a recession still likely next year we could well see further drops in price. Consumers will welcome this at least, since it provides a much-needed respite from the surge in fuel prices that dominated the first half of 2022."
Helping stocks in the sector along was a 2.0% advance for front-dated Brent crude oil futures to $81.99 a barrel on the ICE following the release of bullish inventory data the day before.
According to the Energy Information Administration, the US Department of Energy's statistical arm, commercial crude oil inventories in the US shrank by 5.9m barrels (consensus: -3.0m barrels) over the week ending on 16 December.
There was also some positive market chatter in the background with S&P Global vice chairman, Dan Yergin, telling CNBC that "if you go back to your China story, China comes roaring back, underinvestment in oil and gas, we get up to like $121".
Top performing sectors so far today
Household Goods & Home Construction 10,062.40 +3.01%
Life Insurance 6,986.16 +2.86%
Industrial Metals & Mining 7,878.17 +2.63%
Oil, Gas and Coal 8,217.25 +2.27%
Leisure Goods 21,487.31 +2.26%
Bottom performing sectors so far today
Automobiles & Parts 1,465.75 -2.96%