FTSE closes at 6579.3

Updated 17.33 Thu May 17 2007

Keywords: Goldman Sachs, British Airways, petrol, London, FTSE 100 Index

The FTSE 100 Index closed up 19.8 points at 6579.3 after a strong session for oil stocks.

The price of crude climbed towards $69 a barrel as refinery closures restricted US supplies ahead of the peak summer driving season.

Royal Dutch Shell closed up nearly 4 per cent, or 66p to 1859p, while BP gained 13.5p to 570.5p and BG Group was 16.5p higher at 770p.

British Airways was one of the session's high flyers after a positive note from Goldman Sachs regarding the airline's prospects and value as a bid target.

The stock rose more than 2 per cent, or 11.5p to 501.5p, providing the carrier with a boost ahead of its full-year results on Friday.

Credit checking business Experian topped the Footsie risers board after a fresh round of takeover speculation. Shares were up 22.5p at 598.5p.

The session also benefited from a strong performance for heavyweight pharmaceutical stocks, with GlaxoSmithKline ahead 19p at 1451p and AstraZeneca 21p stronger at 2745p. But a windfall for BT shareholders failed to keep the telecoms company off the Footsie fallers board.

BT appeared to succumb to profit-taking after a strong recent run as shares were almost 3 per cent lower, despite a 27 per cent rise in its dividend and a promise to buy back £2.5 billion of its shares over the next two years. The stock was down 9p at 306.25p.

InterContinental Hotels lost 32p to 1340p. The decline came after rises in recent days as investors bet that the Holiday Inn operator was in line for a takeover approach.

Miners also put back previous gains after a fall in base metal prices, with Rio Tinto down 70p at 3500p, Anglo American off 56p at 2815p and Xstrata down 70p at 2675p.

Old Mutual was ahead 4.4p at 180.3p after it received a broker upgrade from Deutsche Bank.

Winners: Experian Group up 22.5p at 598.5p, Royal Dutch Shell ahead 66p at 1859p, Old Mutual up 4.4p at 108.3p and BP ahead 13.5p at 570.5p.

Losers: BT Group off 9p at 306.25p, Xstrata down 70p at 2675p, InterContinental Hotels off 32p at 1340p and BHP Billiton down 27p at 1180p.