Oil price surge hits share markets.


Global oil markets have been rattled by a pipeline spill in Alaska, sending prices sharply higher.
The soaring oil prices have hurt share markets across Europe and the US.
Oil giant BP has had to shut down production in America's biggest oil field as a result of the spill and the discovery of severe corrosion on the pipeline.
There are concerns daily oil output in the US could be reduced by as much as 8 per cent.
That has led the US Department of Energy to announce it might consider allowing refiners to access America's emergency oil reserve.
As a result of the incident, the key futures contract for Brent North Sea crude traded in London hit a record high of $US78.64.
New York prices have also surged, but are still some way off July's record levels.
The spot price of West Texas crude is up $US2.27 at $US77.05 a barrel.
American equity markets have been somewhat cushioned as investors take the view that tonight's policy meeting at the US Federal Reserve might decide to leave interest rates on hold after 17 consecutive increases.
On the New York Stock Exchange, the Dow Jones industrial average closed 21 points lower at 11,219.
The high-tech Nasdaq composite index is down 12.5 points at 2,073.
The British market has lost just over 1 per cent in value.
London's FT-100 index has fallen 61 points to close at 5,829.
Yesterday, the Australian market edged ahead.
The All Ordinaries index added just seven points to 4,934.
Telstra shares dropped eight cents to $3.80 after the dominant carrier announced it was scrapping plans for a new $4 billion broadband network.
Looking at trade overnight on the Sydney Futures Exchange, the Share Price Index 200 contract has closed down five points at 4,929.
The 10-year bond contract is down 1.5 points at 94.23, with the implied yield rising to 5.77 per cent.
The Australian dollar has eased back overnight.
It was being quoted at 76.32 US cents at 7:00am AEST, down one-fifth of a cent on yesterday's local close.
On the cross-rates, it was at 59.46 euro cents; 87.89 Japanese yen; 40.03 pence sterling; and against the New Zealand dollar it was at 1.222.
The gold price was sitting at $US647.98 an ounce.
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