Stocks of the United States drop following the surge of crude oil prices

By | September 19, 2019

An 8-session winning streak was broken by the Dow Jones Industrial and the assets of haven were rallied following an attack on the weekend on the oil facilities of Saudi Arabian oil facilities which resulted in the surging of crude oil’s price.

142.70 points were shed by the blue-chip index which was equivalent to half of 27076.82. 9.43 points were lost by the S&P 500 which was equivalent to 0.3 percent to 2997.96, as there was tumbling down of nine of the eleven sectors in the index. The only sector which was gaining profits was the energy sector which had an increase of 3.3 percent. There was a drop of 23.17 points in the Nasdaq Composite which was equivalent to 0.3 percent to 8153.54.

5.7M barrels of daily production was knocked out on Saturday due to the attacks on the oil facilities of Saudi Arabia, pushing oil futures of the United States up 15 percent to $62.90 a barrel, which was their largest rise in a day ever-since a decade. The last time crude futures of the United States gained at least 10 percent in a day while all three major indexes of the United States fell was in the middle of the financial crisis on the 19th of Feb, 2009, as per the Dow Jones Market Data.

There was a rise of 15 percent in the Brent crude, which is the worldwide oil benchmark, to settle at 69.02 dollars a barrel, its largest percentage gain till date based on data going back to 1988, according to Dow Jones Market Data. Earlier it had jumped to almost 72 dollars a barrel, however, retraced a couple of those gains after early concerns over oil output receded on Saudi Arab’s vows of restarting production.