US stock market closes midweek lower amid rising oil prices

By Tuba Sahin

ANKARA (AA) – Major indices in the US stock market closed with losses Wednesday amid a surge in oil prices due to disruption in the Caspian pipeline.

The Dow Jones industrial average dove 448 points, or 1.29%, to 34,358 at the close. The S&P 500 lost 56.75 points, or 1.26%, to end at 4,454.

The Nasdaq was off 186.2 points, or 1.32%, to finish the day at 13,922.

The VIX volatility index, known as the fear index, jumped 2.57% to 23.53. The dollar index was up 0.12% to 98.640.

Precious metals were on the rise, with gold adding 1.30% to $1,946 per ounce and silver increasing 1.68% to $25.32.

Crude prices rose significantly on reports that Russian and Kazakhstan oil exports via the Caspian Pipeline Consortium (CPC) from the Black Sea will be halted for one and a half months.

Global benchmark Brent crude was trading at $121.44 per barrel, soaring 5.16%, while US benchmark West Texas Intermediate (WTI) was at $114.53 -- a 4.81% surge

The CPC outage came after Russia warned Tuesday that storm-damaged berths might reduce oil flow by up to 1 million barrels per day, or 1% of global oil production.

The one-month disruption also came after the US said it is working on new sanctions against Russia, which may include EU bans on Russian oil.