Oil prices rose and stocks in Asia fell on Thursday as investors continued to grapple with implications of the U.S.-Israeli war with Iran, and its potential to spur inflation as rising fuel costs ripple through the global economy.
Oil edged past $100 a barrel.
-
The price of Brent crude, the global benchmark for oil, was about $100.11 a barrel at about 12:15 p.m. in Seoul.
-
West Texas Intermediate crude, the U.S. benchmark, was around $94 a barrel.
-
Oil markets have been on a convulsive path since the United States and Israel attacked Iran on Feb. 28. On Monday, the price of Brent spiked to nearly $120 a barrel as traders feared long-lasting cuts in supplies. Prices have pulled back since then, but remain sharply higher than before the war.
-
Investors and analysts across the world are focused on the Strait of Hormuz, the narrow waterway between Iran and Oman that is a vital trading route for oil and natural gas that normally carries as much as one-fifth of the world’s oil supply. Shipping traffic exiting the Persian Gulf through the strait has been effectively halted because of the risk that vessels could be attacked.
-
World leaders agreed Wednesday to release 400 million barrels of oil from their strategic reserves, including 172 million barrels from the U.S. reserve. The release, coordinated by the International Energy Agency, came amid reports of intensifying attacks on ships in the Persian Gulf.
Gasoline prices are up 20 percent since war began.
-
Gas prices rose on Wednesday to a national average of $3.58 a gallon, according to the AAA motor club. The cost for drivers has increased 20 percent since the war began.
-
Gas prices don’t move in lock step with crude, usually trailing increases or drops by a few days.
Stocks fell in Asia.
-
Stocks in Asia, where countries import vast quantities of oil and gas, fell broadly on Thursday. Major benchmark indexes in Japan, South Korea and Taiwan were all down about 1.5 percent. The Hang Seng Index in Hong Kong was down just over 1 percent.
-
Futures on the S&P 500 pointed to a lower open on Thursday, a day after the index ended down 0.1 percent.
The post Oil Keeps Pushing Higher Despite Global Release of Reserves appeared first on New York Times.
