BUSINESS LIVE: US oil hits 7-year high; Sainsbury’s shares up on Fortress reports; Greggs warns on staffing and supply chain disruption
The decision by the world’s major oil producers to keep a cap on crude supplies has extended gains in oil prices globally, with the US oil benchmark West Texas Intermediate hitting its highest level since 2014 on Monday.
Brent crude was also up 0.5 per cent to $81.66 a barrel after OPEC+ said it would increase oil production only gradually, ignoring calls from the US and India to boost output as the world economy recovers.
Shares in supermarkets were on the charge on Monday amid speculation that private equity sharks are still scouring the UK for deals.
Clayton, Dubilier & Rice beat US giant Fortress in an auction for Morrisons at the weekend, and investors view Sainsbury’s as the most likely target of the latter’s next attempt to put its capital to work in the UK.
Greggs has raised its full year profit outlook after underlying sales in its latest quarter rose 3.5 per cent on 2019 levels, but the British baker and fast-food chain warned progress has been hampered by staffing and supply chain disruption.
The group said growth was particularly strong in August when a ‘staycation’ effect was evident and remained in positive territory in September.
The US oil benchmark West Texas Intermediate hitting its highest level since 2014 on Monday