Leading British shares rose this morning after a tentative start as oil shares picked up after their recent battering on disappointment that OPEC has not been able to agree output cuts.
By 10.15 a.m. the FTSE 100 share index was up 30.4 points to 5,268.6, with some 23 points of the gain coming from oils that saw BP up 3.9 per cent and Shell up 2.2 per cent.
Crude oil has lost more than $4 a barrel this week but drifted up today, soothing the oil sector, which took 50 points off the FTSE 100 on Thursday.
Banks were other gainers, with Barclays up 0.5 per cent to 2,172p.
Market watchers said continuing belief that the US economy was set to rebound next year and underlying demand for techs and economically sensitive stocks could help the FTSE 100 advance as would falling oil prices, which cut costs to industry.
"I would think we would probably follow through today. There's a two-way pull with the oils and they're a big factor, but what is bad for oils is good for the market as a general rule of thumb," said Mr Nigel Cobby, managing director of European equities at Deutsche Bank.
The Dow Jones industrial average's near-50-point closing gain yesterday took the New York market on from the 39-point rise showing when the London market closed, giving some support.