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Nov. 27, 2014, 12:45 p.m. EST

London oil stocks shoved lower as OPEC keeps production target

Stagecoach rallies after winning East Coast rail contract

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By Sara Sjolin and Carla Mozee, MarketWatch

LONDON (MarketWatch) — Oil stocks in London sold off Thursday after the Organization of the Petroleum Exporting Countries decided not to cut its oil-production target.

The FTSE’s oil and gas group slid 3.9% after OPEC said the 12-country cartel will stick with its current production target of 30 million barrels a day. Leading up to the meeting in Vienna, there was speculation in the markets that the organization would bring in a reduction, in an effort to stop a recent drop in global oil prices.

The decision to keep the target was made “in the interest of restoring market equilibrium,” said OPEC in a statement.

U.S. crude-oil futures /zigman2/quotes/209723563/delayed CLF25 -54.86%  hit a four-and-a-half year low below $68 a barrel following OPEC’s statement, weighing on the FTSE’s oil stocks.

Shares of Tullow Oil PLC /zigman2/quotes/205079109/delayed UK:TLW +8.54%  tumbled 7.2% and those of Petrofac Ltd. /zigman2/quotes/202340229/delayed UK:PFC -0.42%  dropped 6.2%. BG Group PLC  sloughed off 5.9%. Also, Royal Dutch Shell PLC /zigman2/quotes/204253697/delayed UK:RDSB +1.48%   /zigman2/quotes/207682964/lastsale RDS.B -0.57%  fell 4.3%, and BP PLC   /zigman2/quotes/207305210/lastsale BP -1.93%  declined 2.7%.

The FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX +2.90% fell 0.1% to 6,723.42, with the loss limited in part by gains in shares of travel companies, which can be sensitive to oil prices. EasyJet PLC /zigman2/quotes/202825892/delayed UK:EZJ +5.45%  shares flew up 5.8% despite a ratings downgrade at RBC Capital Markets Thursday, to sector perform from outperform. British Airways’s parent International Consolidated Airlines Group /zigman2/quotes/208070069/delayed UK:IAG -1.24%  rallied 4.9%, and TUI Travel PLC  tacked on 3.9%.

Also higher were shares of Barclays PLC /zigman2/quotes/208409333/delayed UK:BARC +5.32%   /zigman2/quotes/206581728/lastsale BCS +6.78% , rising 2.5% after Goldman Sachs lifted its rating on the bank to buy from neutral.

Outside the main benchmark, Stagecoach Group PLC /zigman2/quotes/206082799/delayed UK:SGC +14.21%  jumped 8.2% after the transportation operator, in collaboration with Virgin, won the franchise to run the East Coast rail route.

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US : U.S.: Nymex
$ 43.50
-52.86 -54.86%
Volume: 0.00
April 9, 2020 5:05p
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/zigman2/quotes/205079109/delayed
UK : U.K.: London
26.32 p
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Rev. per Employee
N/A
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UK : U.K.: London
213.40 p
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1,472.00 p
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UK : FTSE UK
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681.20 p
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246.70 p
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UK : U.K.: London
97.58 p
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P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
£16.05 billion
Rev. per Employee
N/A
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$ 4.88
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/zigman2/quotes/206082799/delayed
UK : U.K.: London
86.80 p
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Sara Sjolin is a MarketWatch reporter based in London. Follow her on Twitter @sarasjolin. Carla Mozee is a reporter for MarketWatch, based in London. Follow her on Twitter @MWMozee.

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