Oil price today: Brent crude dips below $100, stock markets mixed - IOL
Asian markets were mixed in early trade, while oil prices edged lower.
Oil price today: Asian stocks were mixed Thursday following a largely down day on Wall Street with positive US data offset by elevated government bond yields and oil prices.
Elevated oil prices remain a crucial driver of the spike, with the commodity supported by uncertainty in the Middle East, even as Saudi Arabia pumps more fuel through its partially reopened East-West pipeline.
Both main contracts edged down Thursday having jumped around one percent the day before.
Brent for December delivery was around $97.60 a barrel – the November contract closed at more than $103 – while West Texas Intermediate was hovering below $90.
However, the lower oil prices will do little to offset South Africa's significant fuel price hikes that are already locked and loaded for October.
Analysts said traders were presented with a "Goldilocks" batch of figures that provided a fillip to equities on Wall Street as the dealers revised lower the likelihood of a second successive interest rate hike.
The closely watched personal consumption expenditure gauge came in at a below-forecast 3.4 percent, while the Commerce Department revised upwards its estimate for second-quarter economic growth thanks to the artificial intelligence investment boom.
Private jobs creation topped expectations.
The readings pointed to a healthy economy despite the impact of the Middle East crisis and surging oil prices, and saw investors row back their expectations on the Federal Reserve lifting borrowing costs on October 28.
CME's FedWatch tool put the chances of an increase at less than 40 percent, having priced it at more than 65 percent earlier in the week.
"Second-quarter growth was stronger than expected, consumer spending was more robust, the labour market rebounded sharply in September and the Fed’s preferred inflation gauge came in well below expectations," said Chris Osmond, of Fifth Third Wealth Advisors.
"The net effect is broadly supportive of risk assets and materially reduces the probability of an October rate hike."
However, investors remain concerned about the outlook for borrowing costs, with the US 10-year Treasury yield sitting around its highest level since 2007, and the US 30-year yield at a 24-year high.
In New York trade, the Dow and S&P 500 ended in the red, though the Nasdaq rose on the back of a tech rally sparked by a healthy forecast from chip giant Micron, even as it warned on narrower margins.
Chip firms led gains in Asia, with SK hynix and Samsung's advances lifting Seoul's market, while Tokyo's Nikkei rallied thanks to big gains in tech giants Kioxia, Advantest, Tokyo Electron and investor SoftBank.
Taipei and Singapore also gained, though there were losses in Sydney, Wellington, Manila and Jakarta.
