Oil prices surged past $110 a barrel on Friday as escalating geopolitical tensions heightened concerns over global supply disruptions. Brent crude jumped 3.7% to $110, its highest level since May, while WTI rose 3.24% to above $101. The rally was driven by continued attacks on Saudi energy infrastructure by Iran-backed Houthi rebels and reciprocal strikes on energy facilities between Russia and Ukraine.
Adding to the supply worries, a recent attack on Russia's Ryazan refinery reportedly halted a primary processing unit, further tightening refined-product markets. European diesel futures have more than doubled this year, reflecting the strain. Meanwhile, US lawmakers introduced a bipartisan bill to block a proposed deal that would allow Russia to release several hundred million barrels of diesel, keeping those supplies off the global market.
Crude prices have climbed more than 70% this year amid conflicts in the Middle East and the Russia-Ukraine war. The uncertainty surrounding Russian diesel exports and the ongoing attacks on key export centers have left traders bracing for prolonged tightness.
Gold heads for weekly loss as rate-hike bets rise
Gold prices were largely flat on Friday but remained on track for a weekly decline, pressured by stronger-than-expected US inflation data that reinforced expectations of further Federal Reserve rate hikes. Spot gold slipped 0.04% to $4,168.73 an ounce, down 0.59% for the week, while US gold futures for December delivery settled 0.51% higher at $4,191.10.
US producer prices recorded their largest increase in four and a half years in September, following data showing consumer prices accelerated. Fed officials offered mixed signals, with Chair Kevin Warsh expressing optimism about the economy but giving no clear rate direction, while Chicago Fed President Austan Goolsbee called the inflation data discouraging. Cleveland Fed President Beth Hammack warned that worsening inflation expectations could require more aggressive rate increases.
Traders largely expect the Fed to hold rates this month but are pricing in a 90% probability of a December hike, according to CME's FedWatch Tool. Higher interest rates typically weigh on gold, which does not pay interest.
Tesla stock falls after Roadster unveiling
Tesla shares dropped nearly 3% on Friday after the company showcased a redesigned Roadster featuring thrusters developed with SpaceX. The demonstration included aerial manoeuvres and acceleration from zero to 60 mph in under a second, but production is now targeted for 2028, a significant delay from the original 2020 goal.
Analysts questioned the car's financial impact given its expected low production volumes. Gary Black of The Future Fund estimated that 3,000 annual deliveries and a $100,000 profit per vehicle could add roughly $0.06 per share to Tesla's 2029 adjusted earnings. The Roadster could nonetheless strengthen Tesla's technology-focused brand as the company prioritises autonomous driving and robotics.
Apple shares rise after foldable iPhone sells out
Apple shares edged higher on Friday after its first foldable smartphone, the iPhone Duo, reportedly sold out shortly after preorders opened. Social media users reported delivery dates shifting from October 23 to late January, indicating demand exceeding supply. The device features a 5.4-inch external display and a 7.6-inch foldable internal screen.
Apple expects foldable smartphones to account for roughly 10% of the market by 2029. Separately, Chairman Tim Cook said Apple Intelligence had received regulatory clearance in China, with a test rollout expected later in October. The company has partnered with Alibaba to use its Qwen AI models in mainland China and is working with Meta to optimise its Muse Spark open-weight AI model for high-end Macs.
Despite these developments, some analysts remain cautious about iPhone demand, with UBS maintaining a Neutral rating and KeyBanc retaining an Underweight rating.
This article is for informational purposes only and does not constitute financial advice.
