Dow rises, S&P 500 and Nasdaq drop as chip stocks slide, US crude oil surges above $100
Wall Street is sounding the alarm as rising oil prices suggest investors are yet to see the worst.
On Monday, West Texas Intermediate rose above $100 per barrel for the first time since 2022, settling at $102.88. Brent crude oil rose above $112.78 per barrel.
“We’re literally experiencing a physical oil outage where oil is in the ground, and it’s getting worse every day,” said Andy Lipow, CEO of Lipow Oil Associates.
“The longer this situation continues, the higher the oil price will rise,” he said. “If this continues for another 3-4 weeks you will see Brent at $130 or higher.”
Macquarie Group recently suggested that oil could rise to $200 if the conflict continues into the summer.
President Trump has threatened to strike Iran’s energy infrastructure if a deal is not reached soon that includes reopening the Strait of Hormuz, a vital chokepoint that has come to a near standstill since the conflict in the Middle East broke out on February 28.
“For nearly four weeks, markets have shown remarkable resilience to disruptions, supported by a combination of a pre-war surplus, over-water crude and policy barrels that provide a temporary buffer and keep prices in check,” Paola Rodriguez-Masiu, chief oil analyst at Rystad Energy, said in a recent note.
“This phase is now coming to an end,” he added.
