Energy share slump

Source: Exec Digital UK

Date :26/08/2008 11:07:08

Oil and gas producers and miners have declined heavily as trading resumed after a three-day weekend.

Shares in London fell sharply, with Kazakhmys shares dropping 4.8 percent and Xstrata shares falling 4.1 percent while BG Group shares lost 3.8 percent.

Elsewhere, Rio Tinto shares fell 2.9 percent, in line with the rest of the mining sector. The firm reported that its first-half net income more than doubled to US$6.91 billion, helped by strong commodity prices.

A stronger dollar and signs of slowing demand have meant crude oil's futures dropped more than 5 percent on Friday. The contract couldn't regain those losses on Monday, ending 52 cents higher to close at US$115.11 a barrel.

On Tuesday, light sweet oil prices dipped 20 cents to US$114.91 a barrel.

Overall, the U.K. FTSE 100 index fell 2.1 percent to trade at 5,391.60.