NEW YORK: Oil prices barrelled higher again Thursday (Aug 6), extending their volatile run, while global stock markets had a mixed day ahead of key US employment data.
With traders awaiting developments surrounding the Strait of Hormuz, the main oil contracts rose, Brent crude adding nearly four per cent, while the main US contract WTI added nearly three per cent.
Reports that a potential agreement bars US and Israeli vessels from entering the Strait have dampened expectations, said Again Capital’s John Kilduff.
“This situation is just far from settled and you can only give hope so much of a chance, so the market is taking back some of the optimism about the situation,” Kilduff said.
The rebound in oil prices weighed on US equity markets, with the Dow retreating from a record close and the Nasdaq ending flat.
Adding to the caution, US investors are looking ahead to Friday’s monthly government jobs report.
European main indices closed mixed with London’s FTSE 100 losing 0.2 per cent while Frankfurt and Paris climbed modestly, though fresh highs proved elusive.
“Rising oil prices have crimped some of the optimism seen earlier in the week – but the price is still much lower than a week ago, providing a positive tailwind as we move into the second week of August,” said Chris Beauchamp, chief market analyst at online trading and investing platform IG.