Oil Prices Send Stocks Down Sharply

The price of oil surged more than $6 a barrel Friday morning, the biggest gain in more than three months, sending the stock market into a nose-dive and reversing Thursday’s gains.
By ABHA BHATTARAI
Investors are worried that the rising price of oil, coupled with bleak unemployment data that was released Friday morning, will continue to hurt businesses and suppress consumer spending in an already-weak economy.

In addition, a report by Morgan Stanley on Friday said that oil prices could reach $150 a barrel by July 4 because of higher demand in Asia.

The Dow Jones industrials were down 234 points, or 1.85 percent in mid-morning trading, with financial stocks taking the biggest hit. The Dow was also dragged down by shares of American International Group, which stumbled after accusations that the company may have overstated the value of contracts tied to subprime mortgages. Shares of A.I.G. fell $2.43, or more than 6 percent, to $43.98.

The Standard & Poor’s 500-stock index fell 22.79 points, or 1.6 percent, while the Nasdaq composite index fell 37.76 points, or 1.5 percent.

Oil was up more than $6.10 a barrel, or about 5 percent, to $133.89 within the first hour and half of trading, hitting a new record high. The spike came despite no specific disruption in the oil market, suggesting that the move was based on speculation.

NVDL: Banks are taking a big hit. I hope, if you're reading this, you don't have money in bank stocks.

Okay, you have my permission to start panicking: Oil prices pass $132 after government reports supply drop

Oil breaks $132 as U.S. supply unexpectedly drops
OPEC daily oil prices surpass $121 per barrel
Oil prices pass $132 after government reports supply drop
NEW YORK (AP) — Oil prices bolted to a new record above $132 a barrel Wednesday after the government reported that supplies of crude oil and gasoline fell unexpectedly last week. And crude's rise in the futures market again pressured consumers by pulling prices at the pump higher — a gallon of regular gas rose overnight to a new record above $3.80 a gallon.

With gas and oil prices setting new records on a daily basis, many analysts are beginning to wonder whether anything can stop runaway prices. There are technical signals in the futures market, including price differences between near-term and longer-term contracts, that crude may have already risen too high. But with demand for oil growing in the developing world, and little end in sight to supply problems in oil rich nations such as Nigeria, few analysts are willing to call an end to crude's rally.

In London, July Brent crude rose $3.37 to $131.21 a barrel on the ICE Futures exchange.

NVDL: Is there anything left to say except CRASH, BOOM, BANG? Honestly, if the world's newspaper's tomorrow don't essentially have oil as a cover story, and headlines that amount to: WE'RE ALL FUCKED, then God help us. Because we need to stop right now and treat this like it is an emergency. That's exactly what it is. If you're an individual, get your money out of the stock markets, put it into resources like coal and oil (SASOL is a great buy). If you have debts, sort them out now. Start calling up your friends, because in a few weeks you might be out of a job, and the tank of petrol that's in your car now might be one of the last. Hoarding is probably going to start; not only with individuals, but whole countries. And the worst news is those poor mobs are going to grow in number here and everywhere, so work out ways to defend and fend for yourselves, and as I say, call up friends and family and let them know you might be in the neighborhood sometime soon.

Put your clothes on, a chill wind is blowing down Wall Street (PHOTOGRAPHY)