Oil prices climbed to their highest since late 2014! U.S. Oil prices surge past $70, dollar hits fresh 2018 high. The dollar rose to fresh 2018 highs on Monday while oil prices climbed to their highest since late 2014, driven by declining Venezuelan crude production and worries the United States could re-impose sanctions on Iran.
The crude surge lifted energy stocks in Europe and on Wall Street. With European shares supported by strong results. And gains in Nestle after the Swiss company agreed to pay $7.15 billion to Starbucks in a global coffee alliance.
“The general view right now is that the dollar is probably going to continue to move a bit higher. Against the euro, in particular, maybe against the yen as well,” said Larry Hatheway, chief economist at GAM Investment Solutions.
Venezuelan Oil prices exports came under threat after U.S. Oil prices major ConocoPhillips moved to take Caribbean assets of state-run PDVSA to enforce a $2 billion arbitration award, three sources told Reuters.
The move could further crimp PDVSA’s declining oil output and exports.
Nestle was the biggest contributor to the 0.59 percent advance in the pan-European FTSEurofirst 300 index of leading regional shares. Oil giants Royal Dutch Shell and Total were the fourth- and seventh-biggest contributors, respectively.
On Wall Street, the S&P energy index was the biggest gainer among the 11 major sectors during much of the session but faded by the close, ending up 0.18 percent.
The Dow Jones Industrial Average closed up 94.81 points, or 0.39 percent, at 24,357.32. The S&P 500 gained 9.21 points, or 0.35 percent, to 2,672.63 and the Nasdaq Composite added 55.60 points, or 0.77 percent, to 7,265.21.
Eurozone government bond yields slid as the unexpected fall in German industrial output was seen as encouraging the European Central Bank to prolong an unwinding of stimulus.
The yield on the benchmark 10-year German bund fell to 0.53 percent, while yields on U.S. benchmark 10-year Treasury notes rose slightly to 2.9516 percent.
Gold slipped, snapping three days of gains, as the U.S. dollar index strengthened.
U.S. gold futures for June delivery settled down 60 cents at $1,314.10 an ounce.