Rising prices boost oil and gas companies

Steadily rising commodity prices and improving economic confidence are buoying oil and gas stocks hammered by last autumn's unprecedented downturn.

Ernst & Young's index of Aim-listed oil and gas companies saw a second consecutive period of growth in the second quarter, rising by 24 per cent. But although the index is up by 57 per cent since the start of the year, it is 58 per cent down on the same period of 2008.