Energy stocks power FTSE to higher close

By Simon Falush

LONDON (Reuters) - The index of leading shares closed 0.8 percent higher on Monday, recouping some of last week's losses, as heavyweight energy stocks tracked crude prices higher and defensive drugmakers gained.

The FTSE 100 .FTSE gained 46.4 points to 5,667.2, having fallen 1.5 percent on Friday. The commodity-heavy index easily outperformed peers in Germany and France.

Crude oil prices were up $1.46 to $136.82, edging towards their record near $140 a barrel as tension between Iran and Israel countered the impact of Saudi Arabia's pledge to pump more oil, and a vow by Nigerian militants to halt attacks.

Royal Dutch Shell (RDSa.L) rose 1.5 percent, BP (BP.L) gained 1.8 percent and Centrica (CNA.L) jumped 2.4 percent.

The energy-related gains came as a respite to the FTSE after it fell 3 percent last week. The benchmark is still down over 12 percent this year and investors remain braced for more wobbles.

"It's certainly going to be another volatile week," said Keith Bowman, equity analyst at Hargreaves Lansdown.

"I still think there is a lot of nervousness and caution around. Investors are waiting to see whether we are going to see another lurch downwards on the back of the credit crunch difficulties."

A rare loser in the energy sector was FTSE 250-listed Expro EXR.L, down 2.7 percent after U.S. oil services firm Halliburton said it had ended talks to buy its UK rival after Expro refused to open an auction and opted for a 1.8 billion pound ($3.5 billion) rival bid.