Oil stocks surge; Citi upgrades BP
AO World up after upbeat outlook
Vodafone slips after rating slash
FTSE 100 up 1.0, FTSE 250 off 0.3

Nov 22 Reuters The FTSE 100 jumped to a twomonth high on Tuesday, as oil stocks bounced back following a bullish comment on the sector by a brokerage and news that OPEC members were not discussing an oil output increase.

The commoditiesheavy FTSE 100 rose 1.0 to its strongest level since Sept. 13.

Oil majors Shell and BP jumped 3.3 and 5.8, respectively, as crude prices , gained after Saudi Arabia39;s energy minister denied a report that said OPEC oil producers were discussing a potential output increase.

The surge in BP was also helped by Citigroup39;s buy rating on the stock, up from neutral. The brokerage said it expects the rotation into energy stocks to continue.

Britain39;s energy sector surged 4.1 and base metal miners gained 2.2 as metal prices gained.

This FTSE move seems commodity driven. That39;s clearly highlighted but everywhere else we39;re just seeing a bit of choppiness, said Craig Erlam, senior market analyst at Oanda.

Craig mentioned that U.S. bank holiday later in the week could mean a quiet week for the markets.

Meanwhile, data showed Britain39;s government borrowed less than expected in October, although the budget deficit is likely to balloon in the months ahead thanks to energy bill support measures and a slowing economy.

UK markets have rebounded from sharp losses in October as the new government39;s…