Energy shares push down FTSE

FXStreet (Mumbai) - The London’s Ftse index weakened as Oil shares dropped on news that crude stockpiles in the US have hit record highs.

Royal Dutch Shell drops

Shares in energy firm Royal Dutch Shell declined almost 4% after the company said it was cutting its capital expenditure by USD 15 billion over three years. Other Energy shares also dropped on growing concerns of crude supply glut in the global economy. Weir group and BP 2.9% each, while Tullow Oil fell 2.4%.

Meanwhile, airliner Easyjet gained 2.21% on sliding oil prices. Diageo rose 1.24%, Unilever gained 1.7%. The Ftse index dropped 71.44 points or 1.04% to 6754.50 levels.

FTSE Technical Levels

The index currently trades just above the resistance located at 6753.19 (Dec. 3rd high). A break below the same could see the index test 6700.00 levels. On the flip side, a rise above 6773.14 (Nov. 21st high) may see a re-test of 6825.50 levels.

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