Oil surges on Mideast tanker incident, stocks rise
Published : Thursday, 13 June, 2019 at 7:19 PM Count : 296
World stocks mostly rose Thursday and energy prices surged after two oil tankers suffered a suspected attack in the Gulf of Oman, raising tensions over a key trade route for crude.
The price of Brent crude oil, the international standard, jumped nearly 4% to $62.24 a barrel on the news. U.S. crude rose more than 3% to $52.91 per barrel. It had closed almost 4% lower at $51.14 per barrel on Wednesday, weighed by concerns over rising stockpiles and a spiraling trade dispute between the U.S. and China, AP reports.
“The knee-jerk reaction is more a response to the risks associated with higher tensions in the region and prospect of more attacks, than immediate impact on oil supplies,” Craig Erlam of OANDA said in a market commentary.
In Europe, Germany’s DAX rose 0.6% to 12,188 and Britain’s FTSE 100 rose 0.3% to 7,386. The CAC 40 in France was flat at 5,376.
Wall Street was set to open higher as well, with the future contract for the S&P 500 index gaining more than 0.3% to 2,891. The future contract for the Dow Jones Industrial Average was also up 0.3% at 26,089.
The protests in Hong Kong threaten to shake confidence in the hub for many regional and international businesses and investors. Hong Kong’s Hang Seng gave up 0.1% to 27,294.71, extending its losses after closing down 1.7% on Wednesday.
South Korea’s Kospi lost 0.3% to 2,103.15 and the Nikkei 225 index in Japan lost 0.5% to 21,032.00. Australia’s S&P ASX 200 was less than 0.1% lower at 6,542.40, even after the release of better-than-expected jobs data. The Shanghai Composite index added 0.1% to 2,910.74. Shares fell in Taiwan but rose in Singapore and the Philippines.
In currency trading, the dollar slipped to 108.44 Japanese yen from 108.50 yen late Wednesday. The euro rose to $1.1294 from $1.1288.