Australian share market down 1.3 pct as major bank warns oil prices could hit record-high

Alsharq Tribune-Otaify 

The Australian share market closed down 1.3 percent on Thursday as the nation's largest bank warned oil prices could reach record levels amid the ongoing conflict in the Middle East.

The S&P/ASX 200, which tracks the performance of the top 200 companies listed on the Australian Securities Exchange (ASX), closed at 8,629 points on Thursday, a fall of 1.3 percent from 8,743.5 points at the open of trading.

The Australian Financial Review reported that 40 billion Australian dollars (about 28.5 billion U.S. dollars) in value was erased from the ASX on Thursday as global oil prices rose despite a decision from the International Energy Agency to release 400 million barrels.

Economists from the Commonwealth Bank of Australia (CBA) said on Thursday that the global benchmark Brent oil could surge to between 120 and 150 USD per barrel.

Vivek Dhar, head of commodities and sustainability research at the CBA, said that oil and refined product prices are at risk of "rising to levels not seen in history" if the Middle East conflict does not end soon.

As of the close of trade on Thursday, the S&P/ASX 200 was down 4.3 percent over the last month.