Record crude oil price upsets stock markets

Crude oil closed at another record price today, helping to upset some of the major stock indices around the world.

At one point, crude oil was trading at an all time high of $129.60 per barrel before closing at $129.07 per barrel. Concern over the impact of this record price, weakness in the dollar and fears that the recovery from stock market lows had been overdone, prompted falls in many stock markets around the world.

The FTSE 100 closed down 184.90, setting a gloomy tone for the opening of business in USA stock Exchanges. The Dow Jones mirrored the falls in London and closed down 199.48, whereas the NASDAQ sustained lower losses, 28.33 points down.

Oil futures powered to near the $140 per barrel mark as investors bank on global shortages forcing prices up in the months and years to come. This brings future oil contracts in line with the Goldman Sachs report that we covered recently.