Oil prices ease, global stock up on Friday

As the markets opened on Friday, the US stocks edge higher owing to an ease in oil prices. While Nasdaq Composite rose 17 points (0.6%), S&P 500 rose 5.5 points (0.4%), and Dow Jones Industrial Average rose 32 points (0.3%), the Standard & Poor's 500-stock index dipped down 0.1% and closed at 1306.10. The high ups come as the oil prices have come down, hovering around $96 to $97 per barrel. April delivery reported a rise of 11 cents (0.1%) in its oil prices, amounting to $97.20 a barrel.


This week there was a loss of 285 points (2.5%) in the Stocks, as reported by Dow Jones. The loss was reported for three sessions back to back, with Monday and Tuesday’s dips touching down to triple digits for the first time since June. A direct relation between the oil prices and global share and stock financial values seem evident with this result. The share values listed on all major stocks are still higher for the month of February despite the pullback in oil prices since Thursday evening.

According to a report from the US bureau of Economic Analysis, there is an increase in the real GDP (Gross Domestic Product). The increase was at an annual rate of 2.8% in the fourth quarter. This was much lesser than the 3.3% increase feared and forecasted by the economists. The index is expected to remain static at the present 75.1.

European stock markets also showed signs of easing on Friday, after receiving assurances from Saudi Arabia that the Libyan political crisis will not significantly affect the global oil production. The International Energy Agency (IEA) assured the investors that it is ready to cover all shortfalls by releasing its emergency stock whenever required. By Friday, the Stoxx Europe 600 rose to 0.5%, the DAX index (Frankfurt) rose 0.4%, CAC-40 index (Paris) rose 0.6%, and Britain’s FTSE 100 rose 1%.

In spite of the look up, uncertainty on Moammar Gadhafi’s power and the political condition in Libya continue to affect market sentiments. The present situation is an indicator that the unrest is not going to be settled anytime soon, hence the investors are cautious to take any step. Normally, Libya produces an average of 1.6 million barrels of crude oil per day, but the output has gone down heavily owing to the present violent situation in the country. In London, the prices of Brent Crude oil went up 76 cents, and closed at $ 112.14 a barrel, $7 below the high point of Thursday.

The Asian stock market was mostly on the higher side on Friday. Japan’s Nikkei Stock Average rose 0.7%, the Hang Seng (Hongkong) rose 1.8% whereas the Shanghai Composite closed flat.

Reporting on the foreign exchange market, the Euro continued to soar while the Yen and Swiss Franc were steady against the dollar. The dollar rose against the Euro and British Pound. The gasoline price rose to an average of 6 cents, according to a report from AAA, closing at 12 cents higher this week.