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Oil Prices Continue Surge on Concerns of Prolonged War
Benchmark U.S. Crude Up 11.4% to $111.54 a Barrel; Brent Crude Jumps 7.8% to $109.03
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U.S. futures were trading modestly lower early April 3 following surprisingly strong jobs data from the federal government.
Equities markets are closed for Good Friday, but futures markets were trading into the morning, albeit quietly.
Futures for S&P 500 dipped 0.3%, futures for the Dow Jones Industrial Average lost 0.2% and Nasdaq futures were down 0.4%.
American employers added a surprisingly strong178,000 new jobslast month, rebounding from a dismal February that saw 133,000 job losses. The unemployment rate dipped to 4.3% from 4.4%.
Energy markets were closed April 3 following big price surges the day before on fears that theIran warwill drag on longer than expected. U.S. benchmark crude rose 11.4% to $111.54 a barrel on April 2. The price of Brent crude, the international standard, jumped 7.8% to $109.03 per barrel.
President Donald Trump late April 1 vowed the U.S. will continue to attack Iranand failed to offer a clear timetable for ending the conflict in the Middle East.
Payroll employment increases by 178,000 in March; unemployment rate changes little at 4.3% — BLS-Labor Statistics (@BLS_gov)
“A more extended conflict raises the threat to physical infrastructure, extends disruptions through the Strait of Hormuz, and will entail a longer postwar recovery period, with price impacts spilling over later into the year,” according to a report from BMI, a unit of Fitch Solutions.
The U.S. relies on the Persian Gulf for only a fraction of the oil it imports, but oil is a commodity and prices are set in a global market.
Ceramex North America's JT Roberson and Matt Brady unpack what fleets get wrong about aftertreatment total cost of ownership.Tune in above or by going to .
The situation is very different in Asia. Japan, for example, needs access to theStrait of Hormuzfor much of the nation’s oil imports or would need alternative routes. But some analysts say Japan and other nations are counting on an agreement with Iran to allow fuel to be transported through the strait.
Trading was closed in France, Germany and Britain for the Good Friday holiday.
In Asia, Japan’s benchmark Nikkei 225 gained 1.3% to finish at 53,123.49. South Korea’s Kospi jumped 2.7% to 5,377.30. The Shanghai Composite sank 1.0% to 3,880.10. Trading was closed in Hong Kong, Singapore, Australia, New Zealand, the Philippines, Indonesia and India for the Good Friday holiday.
