Oil surged in early trading Monday amid escalating tensions in the Middle East. Brent crude briefly rose as high as $70 per barrel, the mo...
Since the conflict started, Brent crude has gained $4, Hussein Sayed, chief market strategist at FXTM, wrote in a note early Monday. The price will likely continue to climb as the conflict continues, and could weigh on stocks, he said.
"At $70-80 a barrel, the global economy is not likely to feel much impact from this raise in prices, but as we get closer to $100 there will be severe consequences," Sayed wrote. That could trigger"steep selloffs" in equity markets, he said.prices spiked as much as 20% after drone strikes damaged two Saudi Aramco oil facilities, but traded back down when the company quickly restored production.
"It is unlikely that oil prices will soar to levels that will cause yet another global recession," Ed Yardeni of Yardeni Research wrote in a Monday note."If Middle Eastern oil supplies are disrupted, ample strategic petroleum reserves are available to mute any oil price shock. Higher oil prices would also stimulate even more oil production by US frackers."as investors pile into the safe-haven asset.
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