Expensive oil puts pressure on stock growth

European markets drifted lower as crude oil prices continued to move upward on reports of geopolitical tension. An escalating battle between government and rebel forces in Libya added to a wealth of factors driving up oil prices. Ongoing production cuts by Organization of the Petroleum Exporting Countries (OPEC) had bolstered prices in recent months, but the triple whammy of positive economic data out of the U.S. and China, encouraging trade talk news and now Libyan conflict threatening production seems to have pushed major benchmarks into a new range. Jasper Lawler, head of research at London Capital Group, said that while recent factors had largely affected supply: “[Friday’s] better than forecast U.S. jobs data will be lifting demand expectations. Right now, there are plenty of reasons to assume that the current strength in the oil market is here to stay.”

The Stoxx 600 was down 0.2% to 387.5, after rising 0.1% Friday. The euro  was at $1.1233, up nearly 0.2% Monday, following a 0.1% gain Friday. Germany’s DAX and the U.K.’s FTSE 100 led the regional declines. The DAX sank 0.3% to 11,975.5. It had crept up 0.2% by Friday’s close.

In the U.K., the FTSE 100 was also down 0.3% to 7,423.1, though less worryingly as it had closed Friday up 0.6%. The pound GBPUSD, +0.1764%  recovered some of Friday’s loss, rising 0.1% Monday to $1.3061. On Friday it had fallen 0.5%.

France’s CAC 40 PX1, -0.15%  dipped 0.1% to 5,471.3 Monday following Friday’s increase of 0.2%. Crude oil was up again after a strong ending to the week Friday. Brent crude LCOM9, +0.37%  was $70.34 per barrel, up 1.4% from Friday’s close, while West Texas Intermediate (WTI) CLK9, +0.40% was at $63.08, 1.6% higher than Friday. Brent and WTI were respectively trading 2.3% and 2.8% higher than their close a week ago.