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Oil Surges, Stocks Drop On Mideast Unrest; Gold Hits Record


Oil surged to a 29-month high amid speculation unrest in the Middle East and northern Africa will disrupt supplies. U.S. stocks sank on concern rising energy costs will threaten the economic recovery, while Treasuries reversed losses and gold advanced to an all-time high.

Oil for April delivery rallied 2.7 percent to settle at $99.63 a barrel, the highest since Sept. 30, 2008. The Standard & Poor’s 500 Index slid 1.6 percent to 1,306.33 at 4 p.m. in New York after yesterday capping a third straight monthly gain. Ten- year Treasury yields lost three basis points to 3.40 percent after rising six points earlier. Gold futures for April delivery climbed as much as 1.8 percent to a record $1,435.60 an ounce.

The Dow Jones Industrial Average fell 168.32 points, or 1.4 percent, to close at 12,058.02 as most Dow components tumbled, a day after the blue-chip index had closed higher for a third straight month.

The tech-heavy Nasdaq Nasdaq Composite fell 44.86 points, or 1.6 percent, to close at 2,737.41.

Energy prices jumped as unrest threatened to spread from Libya to Iran, OPEC’s second-largest oil producer. Concern higher energy costs will hurt consumer spending and corporate profits overshadowed data showing that U.S. manufacturing grew at the fastest pace since 2004. Federal Reserve Chairman Ben S. Bernanke said the increase in oil and other commodity prices probably won’t cause a permanent increase in broader inflation, suggesting the central bank will continue its stimulus efforts.

(Source: CNBC / Bloomberg)



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