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FTSE leaps 168 points as price of oil increases by 5%

By Roger Baird and Ben Woods

The London market jumped sharply as rising oil prices and a mining rally led to a fourth consecutive day of gains.

Traders cheered Glencore's plans to refinance its $8.45bn (£5.9bn) credit facility, which comes on the back of Tuesday's strategy announcement by Anglo American to shore up its finances.

The FTSE 100 Index lifted 168.2 points to 6030.3 as the price of Brent crude rose more than 5% to just under $34 a barrel as protracted talks continued between oil-producing nations about cutting output.

Germany's DAX and the Cac 40 were both up around 3%.

Iran is reported not to be in favour of the output freeze, agreed by oil ministers from three Opec countries, as well as Russia, on Tuesday. However, traders are cheered that dialogue among oil producing nations is under way.

The price of oil is 70% below its peak in the summer of 2014, but output levels have been maintained as producers bid to keep hold of market share.

IG Index market analyst Joshua Mahony said: "The FTSE has continued to surge higher this week, reaching the 6000 mark for the first time in two weeks."

But Mr Mahony added: "Despite this, there is a general distrust behind any such rally, given the inability to follow through on initial gains and it is this healthy dose of scepticism which provides expectations that this rally will soon stumble."

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