Oil Surges Past $100 as Australian Market Set to Fall Sharply

The Australian sharemarket is set for a weaker start on Thursday after oil prices surged above US$100 a barrel and global equities retreated amid escalating Middle East tensions and renewed inflation concerns.

ASX futures at 5:50 am AEST were pointing to a 94-point, or 1.1%, fall at the open, putting the market on course to extend a volatile week in which higher energy prices have revived expectations of further Reserve Bank of Australia (RBA) interest rate increases.

Investors will also be watching the Melbourne Institute's inflation expectations report, while Breville, Perpetual, SGH, Sandfire Resources, Regis Resources, Kogan and Nine Entertainment are among companies trading ex-dividend.