By Atul Prakash
LONDON (Reuters) - The top share index climbed higher on Friday heading for a fifth straight week of gains, with energy stocks leading the market on speculation that OPEC could agree to output cuts at its meeting next week.
The UK oil and gas index rose 1.1 percent, the biggest sectoral gainer, helped by a 1.2 to 3.0 percent rise in shares of energy companies such as Royal Dutch Shell, Tullow Oil and BG Group.
Brent rose 0.4 percent to $79.62 a barrel after jumping $1.23 in the previous session, with Venezuela reiterating its call for production cuts. Oil prices were also helped by U.S. data on Thursday, including a business activity index that surged to its highest in 21 years, while home resales rose to their highest level since September 2013.
"Oil names are benefiting from a higher oil price, thanks to strong U.S. data yesterday and renewed hopes that OPEC will be first to blink in the ‘rising-production-versus-waning-global-demand' game of chicken being played by the U.S. and the oil producing cartel," Mike van Dulken, head of research at Accendo Markets, said.
"While certain OPEC nations can live with lower prices, others such as Nigeria are not likely to be so happy. Next week's OPEC meeting will be very interesting and oil is definitely a market to watch in the near term."
The blue-chip FTSE 100 index was up 0.4 percent at 6,705.08 points by 0831 GMT. The benchmark index is up about 0.7 percent so far this week and remained on track for a fifth week of gains in a row.
Mid-cap Ophir Energy fell 4 percent after the oil and gas explorer offered to buy peer Salamander Energy in an all-stock transaction. Salamander shares were up about 2 percent.
Rolls-Royce gained 0.6 percent after saying it had won a $5 billion contract to supply aero engines to power 50 new Airbus planes ordered by Delta Air Lines.
(Reporting by Atul Prakash; Editing by Sonya Hepintall)