Feb 07
23
Midday Post
Oil prices up as Iran tensions rise
Oil prices are up amid concerns over depleting stocks and tensions between the west and Iran.
Crude oil for April delivery increased by 47 cents, to $61.42 per barrel on the New York Mercantile Exchange (Nymex). In London, crude oil for April delivery rose by 77 cents to $61.39 per barrel on the Intercontinental Exchange (ICE).
Although prices are still relatively high, today’s increases are moderate compared to yesterday’s surge, which saw prices jump by 88 cents to close at $60.95 per barrel.
According to Bloomberg, stockpiles of distillates – including heating oil and diesel – fell by five million barrels, or 3.8 per cent, last week.
“The main risk to the oil price is either a boycott of trade, isolating Iran, or a military attack,” because either would “influence the production and supply of oil from Iran to the world market,” Thina Saltvedt, an analyst at Nordea Bank, told the news agency.
Iran could be subject to sanctions as the US and Europe are due to meet next week to draft the second resolution against the oil-rich country, which is a key producer in the Organization of Petroleum Exporting Countries (Opec).
Futures fall with Microsoft in focus
Futures on the US stock market fell this morning as Microsoft was ordered to pay $1.52 billion in damages to Alcatel-Lucent for its use of patented technology.
On the Standard & Poor 500, futures dropped by 1.5 points to 1,457.70, while Nasdaq 100 futures fell 4.25 points to 1,850. The Dow Jones Industrial saw its futures slip by 13 points to 12,691.
BEA Systems released its fourth quarter results, posting a 15 per cent rise in revenue. However, the figures fell short of market expectations and shares in the company fell.
Johan Van Der Biest, from Dexia Asset Management, told Bloomberg: “Technology companies are delivering guidance that is very cautious, in fact below expectations. There is immense competition. That’s really weighing on expected growth.”
Ones to watch
Shares in home media company Blockbuster were up by 1.35 per cent to $6.78 this morning after the firm said it had agreed to sell its Australian subsidiary. The master franchise rights for its Australia system would be handed over to Video Ezy.
Chiquita Brands saw its shares fall by 1.31 per cent to $16.62 after the fresh fruit and vegetable company reported a net loss of $41.9 million, or 99 cents per share, in the fourth quarter.
In the same period a year ago, the firm saw a net loss of $19 million, or 45 cents a share.
Domino’s Pizza Inc, Clear Channel Communications and Hearst-Argyle Television are among the companies expected to post their fourth-quarter earnings today
