European Shares Seen Tad Higher As Oil Consolidates

(RTTNews) - European stocks are seen opening a tad higher on Friday as oil prices consolidated near multi-month highs.

Brent crude prices stabilized above $100 a barrel and WTI crude prices fell slightly to hover around $95 a barrel after the announcement of a slew of measures to offset the impact of supply chain disruptions.

The war in the Middle East is creating the biggest oil supply disruption in history, the International Energy Agency said in its latest monthly oil market report, a day after the agency agreed to release a record volume of oil from strategic stockpiles.

The Trump administration has issued its second authorization for buyers to take Russian oil cargoes already at sea and announced it was considering loosening shipping rules in a bid to ease growing pressure on prices.

Energy Secretary Chris Wright told CNBC that the U.S. Navy is not ready to begin escorting oil tankers through the Strait of Hormuz, but a decision can be taken only by the end of the month.

"As soon as it is militarily possible, the U.S. Navy, perhaps with an international coalition, will be escorting vessels through," Treasury Secretary Scott Bessent told Sky News.

Citing economic pressures, President Donald Trump has urged the Federal Reserve to cut interest rates immediately rather than waiting until the next policy meeting. However, analysts said such a move from the Federal Reserve is unlikely.

In economic releases, the PCE price index data for January, the Fed's preferred inflation gauge, along with other reports on durable goods orders and consumer sentiment will be closely watched later today for cues on interest rate movements.

According to the CME FedWatch Tool, there is a 98.3 percent chance the Fed will leave rates unchanged during next week's meeting and delay a rate cut until at least September.

Closer home, U.K. GDP and Eurozone industrial production data for January will be in the spotlight as the session progresses.

Asian markets were mostly lower, with Japan and South Korea leading losses as investors fretted over the stability of global energy flows following Iran's relentless attacks on shipping traffic and energy infrastructure in the Persian Gulf.

Goldman Sachs has revised its crude oil forecast for the second time in a week and warned of a 2008-like spike to near $150 a barrel.

Treasuries were steady after falling across the curve in the previous session on mounting inflation expectations. Gold edged higher to trade above $5,100 an ounce as the dollar index eased after rising in the previous session.

Overnight, U.S. stocks tumbled to reach their lowest closing level in well over three months after closing little changed for two straight days.

The sell-off came amid skyrocketing oil prices and increasing Treasury yields due to Strait of Hormuz disruptions after reports emerged that three more foreign vessels were struck off the coast of Iraq and the United Arab Emirates.

Ayatollah Mojtaba Khamenei, Iran's new Supreme Leader raised alarm bells with a powerful ultimatum targeting U.S. military installations and said the critical Strait of Hormuz would remain closed.

President Donald Trump said that the U.S. benefits from rising oil prices, but his priority is stopping Iran from having nuclear weapons.

Economic reports painted a positive picture of the world's largest economy, with the U.S. trade deficit shrinking in January and jobless claims falling last week.

The Dow lost 1.6 percent, the tech-heavy Nasdaq Composite plunged 1.8 percent and the S&P 500 plummeted 1.5 percent.

European stocks ended lower on Thursday amid escalating tensons in the Middle East and the Trump administration's decision to launch a probe into alleged unfair trade practices by 16 economies.

The pan European Stoxx 600 dropped 0.6 percent. The German DAX slid 0.2 percent, France's CAC 40 gave up 0.7 percent and the U.K.'s FTSE 100 dipped half a percent.