European shares were cautiously higher as investors continued to monitor the war in Ukraine with oil prices coming back into focus over fears of supply disruption.
The pan-European Stoxx 600 extended slight morning gains to be 0.3% higher at midday after a largely weaker showing on Asian stockmarkets.
Oil process were firmer with Brent crude at $112 a barrel and West Texas Intermediate sitting at $109.
”Optimism is seeping away about progress in talks to achieve a ceasefire in Ukraine and that’s sent the price of oil on the march upwards again amid heightened worries about supply,” said Hargreaves Lansdown analyst Susannah Streeter.
“As Ukraine refuses to surrender to Russian forces in Mariupol despite the devastating siege of city, the chances of a breakthrough in negotiations are fading, with a gulf in position separating the two countries.”
“Investors are eyeing key NATO talks later this week, aimed at tightening the sanctions screw on Russia and the prospect of a European crude embargo is expected to be put on the table once more.”
The oil price is also being pushed by restricted supply from OPEC+ group of producer nations and a Houthi attack on a Saudi energy terminal.
Shares in major producers such as BP and Shell, were higher on the news.
In Germany, producer price inflation soared to a record 25.9% in February, up from 25.0% in January and 24.2% in December 2021, the Federal Statistics Office said. The jump in factory gate cost, a key indicator of consumer prices, was its largest since 1949.
In equity news, shares in Chile-based copper miner Antofagasta rose as it announced an exit from its Pakistan copper and mining project.
Consumer products giant PZ Cussons ticked up after saying it had bought UK baby and child personal care company Childs Farm for £36.8m.
