Brent crude oil prices reached $114.73 per barrel in trading on Friday, marking a 0.9 percent increase from the previous day. This price rise is due to concerns over regional conflicts, particularly in the Middle East, and its impact on global energy supply.
Reasons for the Increase in Oil Prices
The main reason for the increase in oil prices is the recent deadly attacks in Saudi Arabia and concerns over the possibility of war with Iran. This situation has led to a 1.3 percent increase in the price of U.S. benchmark crude oil, West Texas Intermediate, which has reached $100.75 per barrel. Additionally, transportation costs for oil have significantly increased due to rising risk premiums. The cost of transporting crude oil from the Gulf to Asia has exceeded $37 per barrel, more than five times its level before the war began.
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Kering Shares Drop and Its Impact on the Market
Meanwhile, Kering (Kering), the French luxury group, faced a decline of over 10 percent. This drop is due to doubts regarding the recovery of sales for the Gucci brand, the largest brand in the group. Gucci sales in the third quarter decreased by 6 percent compared to last year, which is more than analysts' forecasts. The sharp decline in Kering shares coincided with a 0.4 percent decrease in the Stoxx 600 Europe index and other major European indices.
In the U.S. market, the S&P 500 index also fell by 1.2 percent, and the Nasdaq Composite dropped by 2.6 percent. Weakness in technology stocks, particularly due to concerns over high borrowing costs for building data centers and purchasing artificial intelligence chips, has created a wave of volatility in the market.
Investors are also looking for preliminary results from business activity surveys in the Eurozone, the UK, and the U.S. to assess the impact of rising energy prices and borrowing costs on economic growth. In the bond market, concerns over heavy government debt burdens and pressure on budgets have cast a shadow over many developed economies.
The yield on 10-year French government bonds is around 5.07 percent, while the yield on similar German bonds is 3.33 percent. Meanwhile, the yield on U.S. Treasury bonds has also decreased to 4.97 percent. This decline in yields indicates a shift in the bond market, especially following the drop in technology stocks and investors' search for safer assets.
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