Shares in BP and Shell were last up 1.2% and 0.9% respectively, outperforming the UK blue-chip FTSE 100 index which was last up 0.1%
Britain’s energy and oil sector received a brief boost on Thursday after a UK plan to tackle the energy crisis excluded a windfall tax on record oil and gas profits.
Shares in FTSE-listed oil majors BP and Shell briefly spiked to session highs as UK Prime Minister Liz Truss set out her plan to cushion consumers and businesses from soaring energy bills.
Shares in BP and Shell were last up 1.2% and 0.9% respectively, outperforming the UK blue-chip FTSE 100 index which was last up 0.1%.
Truss said the Treasury would announce a joint scheme working with the Bank of England to address the extraordinary liquidity requirements faced by energy firms, worth 40 billion pounds.
Along with the support for bills, Truss announced more than 100 new exploration licences for oil and gas in the North Sea and the removal of a ban on fracking for communities which are willing to go ahead with it.
The FTSE 100 index was little changed by the announcements, while the mid-cap FTSE 250 index fell to a session low.
The windfall tax thing is why we’ve got the FTSE 100 up, whereas you’ve got the mid-cap down, said Danni Hewson, financial analyst at AJ Bell.
It does impact markets for the likes of BP, Shell, and Centrica and this obviously is going to be a relief to them because up until now it was not absolutely, unequivocally said by Liz Truss that there would be no windfall tax, said Hewson.
Former Prime Minister Boris Johnson had announced a ‘temporary and targeted’ windfall tax on energy producers in May, and the opposition Labour Party had said the levy should be extended.
The articles are for information purposes only and Precise Investors shall not be held responsible for any errors, omissions or inaccuracies within it. Any rules or regulations mentioned within the website are those relevant at the time of publication and may not be the most up-to-date.
Precise Investors does not endorse any of the products or services that appear on it or are linked to it and are not liable for any action that you may take as a result of the content of this website, or losses or damage you may incur doing so.
There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.
Please remember that investments of any type may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.