MARKET REPORT: Brent Crude set to tank as markets face oil glut

The price of oil will plunge by more than a quarter by the end of next year as production soars, analysts have warned.

A barrel of Brent crude, which yesterday was trading at around $83, is expected to fall to $60 in late 2025.

Analysts at investment bank Citi said increased output from the Organisation of the Petroleum Exporting Countries and its allies will result in an extra 2.5m barrels a day by September.

Max Layton, an analyst at Citi, said there was likely to be a ‘meaningful surplus’ by the end of next year – just days after the International Energy Agency warned there will be an ‘unprecedented’ surplus as demand peaks in 2029 and then shrinks.

Shares in BP dipped 1.1 per cent, or 4.90p, to 460p. while Shell dropped 0.8 per cent, or 20.5p, to 2724p.

Surplus: A barrel of Brent crude, which today was trading at around $83, is expected to fall to $60 in late 2025

Surplus: A barrel of Brent crude, which today was trading at around $83, is expected to fall to $60 in late 2025

The FTSE 100 fell 0.6 per cent, or 51.81 points, to 8163.67 and the FTSE 250 was down 1.5 per cent, or 301.45 points, to 20,195.95.

Halma was the biggest blue-chip riser after the safety equipment maker’s sales climbed 10 per cent to a record £2.03billion in the year to the end of March while profits increased 12 per cent to £424million. Shares surged 13.4 per cent, or 314p, to 2664p.

Fuller’s reported higher annual results as it cashed in on strong food and drink sales. 

Revenue rose 7 per cent to nearly £360million in the year to March 30 while profits increased 40 per cent to £14.4million. 

Food sales rose 14.5 per centwhile drink sales were up 9.8 per cent. 

Momentum has continued in the new financial year with group sales up 4.4 per cent in the 10 weeks to June 8. Shares added 1.1 per cent, or 8p, to 728p.

Government contractor Capita, which collects the BBC licence fee and runs the London congestion charge, hiked its medium-term sales target, lifting it 2.7 per cent, or 0.38p, to 14.38p.

Stock Watch – Tracsis

Tech firm Tracsis plunged 11.2 per cent, or 100p, to 795p after it said that the transport industry is delaying spending decisions until after the General Election.

The company, which analyses data for the railway sector, expected the UK to head to the polls in the autumn.

But an early election has hit the last two months of its financial year – June and July – and it expects its annual revenues to fall short of market forecasts.

Car dealer Motorpoint – down 1.8 per cent, or 2.5p, to 140p – laid bare the impact of the ‘most difficult’ year in its history amid a slump in prices and high interest rates.

Revenues plunged by a quarter to £1.1billion in the 12 months to the end of March while its losses widened from £300,000 to £10.4million.

Caroline Waddington is to leave UBS to be the finance boss at wealth manager St James’s Place, replacing Craig Gentle in the second half of this year. St James’s fell 1.9 per cent, or 10p, to 523p. 

Trident Royalties is to be bought by a company that manages mining royalty assets in Australia for £144million. 

The AIM-listed firm accepted Deterra’s offer of 49p a share. The bid raised the stock 20pc, or 8p, to 48p.

Payment service firm Paypoint is closing in on a key milestone – £100million profit by the end of March 2026. Its profits rose by a third to £81.3million in the year to the end of March. Paypoint gained 7.2 per cent, or 41p, to 608p.

Security and surveillance firm Petards is to buy UK-based critical communications provider Affini Technology Group for £2.8million, if a bank-related condition is met by June 27.

The update came alongside annual results that showed sales fell 13 per cent to £9.4million in 2023.

It lost £1.2million last year and fell 13.6 per cent, or 1.1p, to 7p.