ASX Struggles for Direction as Oil Prices Surge

The Australian share market has struggled to find direction, with the ASX 200 index currently up 0.2% to 8,692 points. This comes as Wall Street extended its sell-off, driven by surging oil prices and concerns over disruptions in Saudi Arabian crude supplies.

At midday, the Australian share market had erased nearly all of its opening gains and was trading near a three-month low. The ASX 200 briefly dipped into negative territory a couple of times, struggling to find a clear direction.

Market snapshot

• ASX 200: +0.2% to 8,692 points
• Australian dollar: flat at 71.3 US cents
• Wall Street: Dow Jones (-0.6%), S&P 500 (-0.5%), Nasdaq Composite (-0.8%)
• Europe: Stoxx 600 (-0.3%), DAX (-0.2%), FTSE (-0.4%)
• Asia: KOSPI (+0.5%), Nikkei (-0.3%), Hang Seng (-0.2%)
• Spot gold: +0.4% to $US4,311/ounce
• Oil (Brent futures): -0.4% to $US108.27/barrel
• Oil (WTI futures): -0.9% to $US104.90/barrel
• Iron ore: flat at $US96.60/tonne
• Bitcoin: +0.2% to $US76,025
• 10-year bond yields: US 4.98%, Australia 5.37%

Global Market Impacts

Rabobank's global strategist Michael Every notes that the issue is no longer just about securing oil, but also about refining it.