The FTSE 100 rebounded this morning by 46.3 points to 5366.7 as rising oil and commodity prices lifted the index’s energy stocks.

Crude prices climbed as high as $115 a barrel in anticipation of weekly US oil products data due later today by the Energy Information Administration. The rise extended gains yesterday following comments from OPEC member Venezuela that it would propose an oil production cut at the next meeting of the oil cartel in September, if prices continue to fall.

A lower US dollar also rekindled buying in oil and other commodities, such as copper and aluminium.

Tullow Oil led the blue chip index, up 51.5p to 745.5p, which also benefited after analysts at UBS upgraded the stock to "buy" from "neutral". BP rose 8.25p to 515.25p and Royal Dutch Shell added 37p to £18.33.

Miners Rio Tinto, up 277p to £49.18, BHP Billiton, up 83p to £16.03, and Xstrata, up 125p to £30.00, advanced tracking higher metal prices.

However, BT Group, down 9.9p to 167.4p, and Scottish & Southern Energy, down 36p to £14.17, fell as they went ex-dividend.

Sainsbury was also a heavy faller, down 7.5p to 319.25p, after analysts at JPMorgan downgraded the retailer to "neutral" from "overweight", noting that its food trading is the weakest of the big four supermarkets and they can foresee trading worsening.

In the FTSE 250 Michael Page, the recruiter, rose 22p to 352p, after its chief executive was quoted in the Swiss press saying a sale of the company to Adecco could be possible at 600p per share or more.

Capital & Regional gained 20p to 182p in response to a late announcement yesterday that it had exchanged contracts with an investment fund managed by Apollo Real Estate Advisors for the formation of a joint venture for its German portfolio. Under the terms of the joint venture, Apollo will acquire approximately half of C&R’s equity investment in the German portfolio for €65.6 million in cash.

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