Oil rises on mounting future supply concerns

Crude oil prices jumped nearly 1.5% on Friday, marking a second straight weekly gain as looming European Union sanctions on Russian oil raised the prospect of tighter future supply.

In the last week, benchmark Brent Crude Oil futures rose 4% while WTI Crude Oil futures jumped 5% after the EU set out an embargo on Russian oil as part of its toughest-yet package of sanctions over the conflict in Ukraine.

The EU is tweaking its sanctions plan, hoping to win over reluctant states and secure support from the 27 member countries.

On Wednesday, the European Union outlined its plan to ban Russian oil imports, raising concerns related to future market supplies.

Additionally, the fear of future supplies has weighted the concerns related to lower demand in China amid prolonged lockdowns.

Earlier in the last week, crude oil prices dropped significantly after China stated that the country’s economy contracted for a second month to its lowest since February 2020 because of COVID-19 lockdowns, as per the factory activity data.

Both crude oil benchmarks have risen steadily in the last 2.5 months after Russia officially announced Ukraine's invasion.

On Friday, Brent Crude oil settled at US$112.39/bbl, up 1.3%, and WTI crude oil settled at US$109.77/bbl, up 1.4%.

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ASX 200 tumbles at open; News Corporation tanks over 10%

The Australian share market opened on a lower note on Monday as worries over aggressive rate hikes and economic slowdown after the RBA hiked interest rates for the first time in 11 years, still continues. The benchmark ASX 200 index was trading 0.78% or 56.2 points lower at 7,149.4 in the first 10 minutes of trading, while the ASX All Ordinaries index tumbled 0.89% to 7,401. The A-VIX shot up by 14.2% to 19.41 and is up a massive 82.65% this year.

Wall Street's main indices ended Friday’s session on a weak note, with the Dow Jones Industrial Average tumbling 0.3% to 32,899.37, while the S&P 500 slid 0.57% to 4,123.34. The NASDAQ Composite ended the session 1.4% lower at 12,144.66.

Coming to the top ASX 200 laggards, News Corporation (ASX:NWS) was the top loser, falling10.48%, while Liontown Resources Limited (ASX:LTR) and REA Group Limited (ASX:REA) were also among the list of top losers, tumbling 3.98% and 3.92%, respectively. On the flip side, Polynovo Limited (ASX:PNV) and Westpac Banking Corporation (ASX:WBC) were the top gainers, rising 3.88% and 2.66%, respectively.

On the sectoral front, nine out of the 11 sectors were trading lower. The A-REITs sector was leading the fall with a 1.93% downtick, followed by a 0.98% fall in the financial space. The healthcare sector stood firm with a 0.84% rally in early trade.

9^th May 09:42 AM AEST

ASX 200 to open lower after weak ending by Wall Street

The Australian share market is likely to begin the week on a muted note following poor closing on Wall Street last Friday. The domestic investors continue to remain concerned about aggressive interest rate hikes and economic slowdown after Reserve Bank of Australia (RBA) raised inflation forecasts drastically last week.

According to the latest SPI futures, the ASX 200 is expected to open 51 points or 0.7% lower on Monday. On Friday, the benchmark index declined 2.2% to 7,205.6 points.

Meanwhile, Westpac Banking Corp (ASX:WBC) shares would be in focus on Monday as Australia’s oldest bank is slated to release its half-year results.

On Wall Street, the Dow Jones fell 0.3%, the S&P 500 dipped 0.6%, and the NASDAQ ended 1.4% lower.

US Labor Department data showed the unemployment rate fell last month to its pre-pandemic low of 3.5% as job growth moderated. Average hourly earnings rose 5.5% from a year ago, slightly slower than the previous month's increase.

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Oil rises on mounting future supply concerns