Oil

Strikes in Venezuela and the prospect of war in Iraq make Opec's belated decision on production and quota levels look irrelevant. But the cartel's action provides an important boost to its credibility. Its members account for only one-third of global production, but they supply two-thirds of exports. Restoring confidence depends partly on Venezuela, Nigeria and Algeria, the most likely defaulters, sticking to the new limits.

European oil stocks have outperformed the market by 13 per cent this year, though they have fallen back since October. The firmness is due partly to the sector's defensive qualities, set against a dismal performance by equities generally. More expensive oil benefits producers such as BP and Statoil at the short term expense of companies with greater refining exposure, including Royal Dutch/Shell and TotalFinaElf. more