The oil prices fell 5% at the end of Asian exchanges, after the acceptance by Israel of a bilateral cease-fire proposed by Donald Trump, but without direct confirmation by Tehran, the relief of investors also contributing to boost the scholarships.
Around 6:35 a.m. GMT, the price of the Brent of the Brent of the North Sea fell 5.02% to 67.89 dollars, and that of the barrel of American WTI unscrewed from 5.21% to 64.94 dollars.
The prices of black gold accelerated their tumble after the acceptance by Israel of the proposal for “ceasefire bilateral fire” with Iran previously announced by US President Donald Trump.
The courses had already unscrewed by more than 7% on Monday, the operators were relieved after the attack – very limited – by Iran of a base of the United States in Qatar.
“The details of the ceasefire agreement are still blurred (…) Relaxation and de-escalation are therefore not yet acquired,” said Michael Wan, Mufg Bank analyst.
The fact that Iran has, according to Donald Trump, accepted the ceasefire “seriously decreases the risk of more extreme scenarios resulting in serious disruption of oil supply,” he added.
The head of Iranian diplomacy, Abbas Araghchi, said that he did not “agree” at this stage, but that Tehran had “no intention” to continue his strikes if Israel “stops”.
The market initially anticipated heavier reprisals, alarming possible disturbances in maritime traffic in the Strait of Ormuz, off Iran, where 20% of global oil production go.
With its limited shot on Monday against an American base, “Tehran played the card of prudence (…) so as not to shake the foundations of the oil market: the traffic lanes of + tankers + remained open, no threat to Ormuz”, commented Stephen Innes, of SPI ASSET Management.
“Once it has become clear, the war bonus (which had recently made oil prices flambé) has passed out, while the stock markets shed the end of the alert and support the accelerator,” he continues.
In addition, global demand remains under pressure, limited by the economic uncertainties linked in particular to the trade war, and the planetary supply of black gold remains overabundant: high stocks, large available reserve capacities of OPEC+ and strong production of American shale gas …
Vigorous bounce of scholarships ___
In this context, the plunge of oil prices reassured investors, somewhat soothing their persistent concerns about economic conditions.
On the Tokyo Stock Exchange, the Nikkei star index closed up 1.08% to 38,770.43 points and the broader Topix index from 0.79% to 2783.06 points.
The Seoul Stock Exchange jumped 2.96%, Sydney by 0.95%, Taipei sold 2.10%. The Hong Kong Hang Seng index increased by 1.14% around 06:30 GMT.
“The uncertainty concerning the situation in the Middle East dissipates” after the announcement of the ceasefire despite the vagueness which surrounds it, which encourages purchases on the stock market, underlined the experts of Tokai Tokyo Intelligence.
The drop in oil prices “is also favorable” to this resumption of the market, they note.
The operators were also going to turn their gaze to the figures for consumer confidence in the United States, expected later Tuesday, in search of an index on the monetary policy of the American Federal Reserve (Fed), after the call of a governor of the institution to lower the rates very soon.
This article was published automatically. Sources: ATS / AWP / AFP
