This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

World Stocks Down, Oil Up on Libya Unrest

LONDON -- The violence in Libya, which has effectively split the country into two, dominated markets again Thursday, sending stocks lower and oil prices even further above $100 a barrel.

With reports indicating an escalation in the violence in and around the capital city of Tripoli, now that large parts of the country are in the control of opposition groups, there are fears that longtime leader Moammar Gadhafi may be preparing for a final showdown.

The chaos has disrupted the North African country's oil output -- Libya produces about 1.6 million barrels of crude per day and has the biggest oil reserves in Africa -- and stoked worries that other bigger producers, such as Saudi Arabia, could face protests of their own. So far this year, the longtime leaders of Tunisia and Egypt have already had to quit following massive popular uprisings.

Unsurprisingly, oil prices have surged over the past week, hurting stocks.

In London, Brent crude for April delivery was up another $2.88, or 2.6%, at $114.13, while the New York rate rose another 2% at over $100 a barrel. The New York contract has soared an astonishing 20% over the past week.

"Clearly this spike in the price of oil, unless it is just temporary, could well have quite an unfavorable affect on the global recovery process," said David Buik, markets analyst at BGC Partners.

Fears that the global recovery from recession may come to an abrupt halt amid sky-high oil prices have weighed on stock markets all week, especially at a time when inflationary pressures are mounting. Stagflation -- the combination of rising inflation and lower growth -- is hardly a condition investors were dreaming about as they chased a number of stock indices up to their highest levels since the summer of 2008.

"Further price increases are likely to put a serious dent in the global economic recovery and could, in a worst case scenario, potentially kick-start double-dip recessions on both sides of the Atlantic," said Will Hedden, a sales trader at IG Index.

In Europe, the FTSE 100 index of leading British shares was down 0.2% at 5,909 while Germany's DAX fell 1.1% to 7,117. The CAC-40 in Paris was 0.2% lower at 4,006.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,136.72 +4.75 0.03%
S&P 500 1,999.75 +0.77 0.04%
NASDAQ 4,559.8590 +7.10 0.16%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs