Houthi21 Mar 2022 16:08
Oil prices rise, shares point lower
Oil prices are climbing after Houthi group rebels targeted various oil and gas sites across Saudi Arabia over the weekend.
Some production was temporarily disrupted, adding more supply uncertainty as speculation grows that Europe is about to announce an embargo on Russian oil.
Brent crude lifted 3% to $111 today, meaning it has risen for the past three sessions after falling to below $100 at one point last week.
Equity markets, meanwhile, are seeing a downbeat start to the week after losses in Asia and forecasts that the FTSE 100 index will open 10 points lower at 7394.
US futures have also fallen after stock markets experienced their best week since November 2020, with the S&P 500 up by more than 5%.
European markets also closed higher for the second week in a row, despite little prospect of a ceasefire or cessation of hostilities between Russia and Ukraine.
Michael Hewson, chief market analyst at CMC Markets, said: “There appears to be a growing disconnect between what markets are doing and what is happening on the ground in Ukraine.”
In other key developments this week, Wednesday sees the publication of February inflation figures and Chancellor Rishi Sunak’s spring statement. Purchasing manager index figures from across Europe are also due on Thursday, showing the first impact of the Russia/Ukraine conflict on activity.