London stocks edged higher in early trade on Monday, with energy issues in the black amid firmer oil prices, as investors eyed the latest policy announcement from the Bank of England later in the week.
At 0835 GMT, the FTSE 100 was up 0.2% at 9,735.89.

Matt Britzman, senior equity analyst at Hargreaves Lansdown, said: "Rates are widely expected to stay at 4% on Thursday, but the real debate is whether policymakers deliver a cut in December, with odds hovering near 50-50. With stubborn inflation and slowing growth, expectations for the year ahead are in the balance."

In equity markets, BP and Shell both gushed higher after Opec+ paused planned production increases for next year.

Britzman said: "Brent crude oil climbed to $65.10 a barrel this morning, marking a fourth straight day of gains as OPEC+ signalled it will pause production hikes in early 2026 after a modest boost in December. The move eases fears of oversupply, while fresh US sanctions on Russian oil majors and weekend drone strikes on key infrastructure add geopolitical risk to the mix."

BP was also in focus after saying it had sold its non-controlling interests in the Permian and Eagle Ford midstream of its US onshore oil and gas division for $1.5bn to funds managed by investment firm Sixth Street.

Elsewhere, homeware retailer Dunelm gained after RBC Capital Markets upgraded to the shares to 'outperform' from 'sector perform'. It said the stock has de-rated by 2-3 P/E turns over the past two years, given a stable profit trend and concerns over maturity.

"However, we think it should now see an acceleration in growth, driven by market share gains and gross margin improvement.

"The shares have lagged the sector despite DNLM's improving outlook. Hence, we see an opportunity here and upgrade Dunelm to outperform."

Industrial safety equipment maker Intertek nudged up after saying it had bought Suplilab, a provider of food safety and medical devices testing services, based in San José, Costa Rica for an undisclosed sum.

On the downside, Vodafone was knocked lower by a downgrade to 'sell' at UBS.