Oil Surges to $80 Pushes up Wall Street

Brent crude surged to $80 a barrel on Thursday, pushing up Wall Street with energy shares rising 1.31 percent.

Concerns over disruption to supplies on geopolitical fears saw the surge of Brent crude futures, the international benchmark at its highest since November 2014.

Energy shares gained 1.31 percent boosting the S&P 500 while the Russell 2000 index was at record highs following data that showed small-cap companies persisted its rally.

The second biggest gainer on the S&P sectors was the industrial sector gaining 0.6 percent.

Data a Mixed Bag

Portfolio manager at Kingsview Asset Management in Chicago, Paul Nolte said that the earnings numbers were a mixed bag with pretty good economic data which lead to moderate buying in the market.

He also said that with the Russell 2000 at a new high, it attracted interest from investors.

Market participants believe that the Federal Reserve will raise interest rates next month following the release of data that showed unemployment was at an all-time low since 1973.

Manufacturers Increase Prices on Products

Data on manufacturing saw a rise in the mid-Atlantic region in factory activity.

The Dow Jones Industrial Average fell 0.15 percent or 36.95 points.

The S&P 500 gained 0.01 percent or 0.28 points at 2,722.74.

The Nasdaq Composite fell 0.05 percent or 3.81 points at 7,394.48.

The biggest losers were real estate and utilities and on the Dow, Cisco slumped 2.8 percent, Walmart fell 1.6 percent in spite of beating sales and earnings after profit margins weighed on their balance sheet. Shares of J.C. Penny fell 11.1 percent after missing estimates.


Oil producers BP, Eni, Total and Shell shares were all up in Europe, with Barclays Bank revising their predictions for the average price of oil to $73 for the year from $62 a barrel. There are reports that some banks predict that next year oil could hit $100 a barrel.

London based FTSE 100 Index was at a record, helped by the rise in oil prices, closing at 7787.97.

South America Oil Production in Free Fall

The continuing disruption in Venezuela oil field output together with corruption and employees leaving jobs over safety and security and low wages has also tightened the oil markets.

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Look, with the international benchmark, Brent crude futures rise of around half in the past year and the escalation of tensions in the Middle east and conflicts in the region, the future of global oil supplies has increased.

Total the giant oil company’s CEO reportedly said that oil in the coming months could hit $100.

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On the NYSE advancing issues outnumbered decliner at 1.52 to 1 ratio, on the Nasdaq 1.97 to 1 ratio.

There were 24 new 52 week highs and four new lows on the S&P index.

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