London
12 °C
Manchester
Glasgow
12 °C
Dublin
Belfast
7 °C
Washington
Denver
7 °C
Atlanta
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5 °C
Houston Texas
New Orleans
El Paso
Phoenix
Los Angeles
12 °C
7 °C
21 °C
-36 °C
-3 °C
10 °C
Oil tops $100 as Iran attacks offset stockpiles release
Oil prices soared Thursday, briefly trading above $100, and stock markets extended losses as Iran's attempts to hit supplies in the Middle East offset the release of crude reserves by major economies.
Iran has launched a new wave of attacks against Gulf energy targets, as the International Energy Agency said the Mideast war "is creating the largest supply disruption in the history of the global oil market".
IEA member countries have agreed to unlock 400 million barrels of oil from their reserves -- their largest release ever.
However the move was unable to overcome fears about the choking of energy supplies, with the Strait of Hormuz -- through which a fifth of global crude passes -- effectively shut down.
The price of Brent North Sea crude, the international benchmark, peaked at $101.59 per barrel on Thursday.
It later pared gains to trade at $97, still a sizeable jump compared with before the start of the conflict 13 days ago.
"The longer the oil price remains elevated, the more damaging and long lasting the inflation shock will be for the global economy," noted Kathleen Brooks, research director at trading group XTB.
Impacting the cost of other fuels, New Zealand's national airline said it would cancel 1,100 flights over the next two months.
Hong Kong aviation giant Cathay Pacific meanwhile announced new jet fuel surcharges for most routes, amounting to roughly double the existing costs to passengers.
Major stock markets shed less than one percent on Thursday. While share prices of airlines take a hit, oil majors and defence companies continue to benefit from the war.
"US futures are pointing to a weaker open," said Victoria Scholar, head of investment at Interactive Investor.
"The dollar has strengthened, driven by safe-haven demand, fears of inflation, and higher-for-longer interest rate expectations," she added.
In its latest market report, the IEA said daily global crude production was down at least 8.0 million barrels, with an additional 2.0 million related to petroleum products shut off.
The Gulf states' combined daily oil output is down by at least 10 million barrels.
The IEA release of strategic reserves is equivalent to about 20 days of supplies that transit through the Strait of Hormuz, which has been effectively shut down owing to Iranian attacks on ships.
- Key figures at around 1115 GMT -
Brent North Sea Crude: UP 5.5 percent at $97.00 per barrel
West Texas Intermediate: UP 5.0 percent at $91.64 per barrel
London - FTSE 100: DOWN 0.4 percent at 10,311.67 points
Paris - CAC 40: DOWN 0.5 percent at 8,003.17
Frankfurt - DAX: DOWN 0.1 percent at 23,613.74
Tokyo - Nikkei 225: DOWN 1.0 percent at 54,452.96 (close)
Hong Kong - Hang Seng Index: DOWN 0.7 percent at 25,716.76 (close)
Shanghai - Composite: DOWN 0.1 percent at 4,129.10 (close)
New York - Dow: DOWN 0.6 percent at 47,417.27 (close)
Euro/dollar: DOWN at $1.1556 from $1.1574 on Wednesday
Pound/dollar: DOWN at $1.3390 from $1.3419
Dollar/yen: DOWN at 158.74 yen from 158.92 yen
Euro/pound: UP at 86.32 pence from 86.25 pence
burs-bcp/ajb/rl
(B.Ramirez--TAG)
