Investment responses to prices

FT's Lex talks about a change in strategy at BT in response to evidence that oil prices will be higher than they had forecast.

If deals and capital spending follow, it would represent a U-turn by BP. It is also understandable why oil majors use cautious long term forecasts. Nonetheless with spot oil prices now almost four times BP’s current planning assumption, it looks likely that Mr Hayward will turn the capex tap on.