THE FTSE 100 Index has climbed above the 7,000-mark for the first time in its history.

It came as world markets were buoyed by a small recovery in the price of oil, as well as hopeful signs over the Greek debt crisis.

London's top-flight index has also been lifted by the prospect of UK and US interest rates remaining lower for longer.

The index had been on the cusp of the landmark after soaring to new highs, following on from a Budget-inspired rally earlier in the week.

It comes just weeks after the FTSE breached an all-time high that stood for more than 15 years, since the dotcom era at the end of 1999.

It rose as high as 7018.2 points on Friday, March 20, as the price of a barrel of Brent crude, still less than half its value last summer, edged above 55 US dollars.

The rise boosted Royal Dutch Shell and BP, a staple of many UK pension funds, by about one per cent, with exploration firm Tullow Oil climbing nearly three per cent and rival BG Group two per cent up.

Sentiment was also lifted by hopes Greece will agree to reforms to stop it running out of money following the debt-laden nation's latest talks with the European Union.

Meanwhile, this week has seen signs from the US Federal Reserve it is in no hurry to raise interest rates, while the Bank of England has signalled caution on rate hikes in the UK amid the threat of persistent low inflation.

Peter Cameron, assistant fund manager at Ecclesiastical Investment Management, said: "After 15 long and bumpy years, the FTSE 100 has finally clawed its way back to the levels of the late 1990s and unlike then, when the market was gripped by an irrational technology bubble, this new high should not cause alarm amongst investors.

"A backdrop of inflation tailwinds from declining food and fuel prices, falling unemployment and signs of wage growth finally returning, create a benign outlook for the UK economy in 2015.

"Improving economic activity within the eurozone, our largest trading partner, will also act as a tailwind, as should recent comments from the Bank of England which indicate interest rates may stay lower for even longer than investors expect."