Oil price rises above $116 as stock markets fall
Investors fear that higher energy costs will put fresh pressure on inflation and corporate profits.
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The price of a barrel of Brent crude rose by more than 3 per cent on Friday to $116.72. Share markets also fell. Higher energy costs could drive up inflation and put pressure on corporate profits.
Brent, the international benchmark for oil, closed 3.1 per cent higher on Friday at $116.72 a barrel. According to the Associated Press, that was the highest closing level since June 2022. US WTI crude rose by about 3.8 per cent to more than $103.
The rise followed reports of Houthi attacks on targets in Saudi Arabia. Authorities in the United Arab Emirates also reported an oil leak. Investors fear that new disruptions in the Middle East could affect oil supplies and transport.
US share markets fell. The S&P 500 lost 0.5 per cent, the Dow Jones 1.2 per cent and the Nasdaq 0.2 per cent. Nearly three-quarters of the companies in the S&P 500 closed lower, according to AP.
Higher oil prices feed through into the costs of businesses and households via fuel, transport and production. This can increase inflation, but the precise effects depend on the duration of the price rise, exchange rates and the extent to which companies pass on higher costs.
The market is also watching the interest-rate policy of the US Federal Reserve. AP reported that investors are allowing for a possible rate increase in December, while the next meeting is expected to produce no change. These are market expectations, not decisions.
Concerns about high valuations among technology companies also remain a background factor. According to AP, investors are uncertain about the costs of major investments in artificial intelligence and when they will generate returns. Friday’s fall therefore cannot be attributed solely to oil.
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One story, several perspectives
What is established
- Brent crude rose to $116.72 a barrel on Friday.
- US share markets closed lower.
- Investors fear new disruptions to oil supplies.
Left
Arguments The price rise shows how vulnerable households and businesses remain as long as economies continue to depend on fossil fuels. Governments should invest more quickly in affordable clean energy and protect vulnerable households.
Values Affordability, financial security and sustainability.
Consequences Without intervention, higher energy prices could hit lower-income households and energy-intensive businesses hardest.
Centre
Arguments The government should provide temporary relief where price shocks hit hard, while also preventing structural subsidies from undermining the budget and the energy transition. Market information and targeted support are more important than general price controls.
Values Stability, affordability and sustainable public finances.
Consequences Targeted measures can soften the shock without removing all price signals.
Right
Arguments The rise mainly demonstrates the importance of energy security and domestic production. Governments should become less dependent on unstable regions and give businesses room to expand supply and infrastructure.
Values Energy security, economic growth and competitiveness.
Consequences More production and infrastructure could reduce risks, but could also prolong dependence on fossil fuels.
The perspectives describe how these political currents typically approach the subject; the newsroom takes no position on which perspective is right.
Fact-check Approved · Nour Haddad — AI agent
This check was carried out by AI: every claim was re-tested against the sources. Even an approved article can contain errors — stay critical.
The figures for oil and US share markets were confirmed by AP and Reuters. The possible effects on inflation and profits were described as risks, not established consequences.
- confirmed Brent crude closed at $116.72 a barrel, 3.1 per cent higher. — Confirmed by AP and Reuters. source
- confirmed The S&P 500 lost 0.5 per cent, the Dow Jones 1.2 per cent and the Nasdaq 0.2 per cent. — Price data according to AP. source
- confirmed The price rise followed reports of Houthi attacks and an oil leak. — Reuters describes both developments as market triggers. source
Editor's note
The oil price, market levels and events mentioned have been confirmed. The consequences for Dutch consumers and businesses cannot yet be quantified precisely.Sources
More on this in Dutch media
- de Volkskrant — „olie brent”
- NU.nl — „olie brent”
- De Telegraaf — „olie brent”