In London on Monday, the FTSE 100 gained 0.6 percent to 5,270.7 while the FTSE 250 barely moved at all, adding only 3.1 points to 7,498.9 as trade was relatively slow at just 2.6 billion shares.

The oil sector was strong in both the blue chip and mid-cap categories as Lehman Brothers predicted that crude oil would stay at $50 per barrel for the upcoming four years.

BP was up 2.6 percent to 642 ½p on Lehman’s increase of its price per share target from 550p to 610p. Royal Dutch Shell was also up as its A shares gained 0.5 percent to £17.57 and its B shares were up by 0.2 percent to £17.98.

Lehman’s advanced target prices from £16.00 to £19 for both sets of shares. Meanwhile, in the mid-caps, Premier Oil gained 4.5 percent to 698 ½p, Hardman Resources was up 5.1 percent to 103p, Buirren Energy added 5.7 percent to 723p, Paladin Resources gained 3.6 percent to 250 ½p, and First Calgary Petroleums was up by 8.5 percent to 382 ½p.

Oil service companies also benefited, such as Wood Group, which was up 2.8 percent to 200 ¼p as Lehman raised its target price to 210p, up from 160p. In the tobacco sector, after Morgan Stanley raised its target price from £10.50 to £11.50, British American Tobacco gained 2.7 percent to £10.76.

Retailer Woolworths lost 0.7 percent after an update that showed no signs of improvement, as sales and gross margins both fell.