Oil prices today: Oil plunges as Donald Trump predicts war’s end
Shares are set to jump after US President Donald Trump suggested the Middle East war may be near an end, bond yields also tumbled this morning.
Benchmark oil prices tumbled overnight after US President Donald Trump told a reporter he thought the Middle East war is near an end.
On Tuesday morning global benchmark crude fetched $US89.69 down more than 30 per cent from a high around $US118 a barrel it hit on a wild session of trade Monday. US West Texas Intermediate (WTI) oil also fell around 25 per cent to $US94.77 a barrel.
“Early this morning, risk assets received an additional boost as the US President was reported as saying in a phone interview with a CBS reporter that the war could be over soon and that the US was running well ahead of its previously outlined 4-5 week timeline,” said National Australia Bank economist Sally Auld.
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By continuing you agree to our Terms and Privacy Policy.The G7 Group of nations is also set to hold a virtual meeting on Tuesday to discuss a possible joint release of oil reserves from their stockpiles, after they released a statement on Monday flagging their intentions. The G7 members are Canada, France, Germany, Italy, Japan, the United Kingdom and the United States.
Prices for London Gas Oil as the diesel benchmark also tumbled overnight.
Shares jump, bond yields fall
On Wall Street shares jumped in response to Mr Trump’s comments and Australian equity futures surged 2.3 per cent to point to a strong recovery after the index tumbled 2.9 per cent on Monday.
Australian Government bond yields also opened sharply lower this morning as traders scaled back rate hike expectations. The yield on the Australian 10-year bond fell 12 basis points in early trade to 4.83 per cent. The 1-year government bond yield fell 11 basis points to 4.29 per cent.
