The stunning recent runup in global oil prices could threaten economic growth and is unlikely to retreat until 2023, the World Bank said Thursday.
Average crude prices are expected to end the year at $70 a barrel, 70 percent higher than in 2020, according to the latest Commodity Markets Outlook.
That in turn is pushing up other energy prices like natural gas, the report said.
“The surge in energy prices poses significant near-term risks to global inflation and, if sustained, could also weigh on growth in energy-importing countries,” said World Bank chief economist Ayhan Kose.
The increases have been “more pronounced than previously projected” and “may complicate policy choices as countries recover from last year’s global recession.”
Oil prices in recent weeks have surged above $80 a barrel, the highest point in years, as economies reopen following the pandemic shutdowns and amid shipping bottlenecks.
The World Bank uses an average of Brent, West Texas Intermediate, and Dubai which it said will “remain at high levels in 2022 but will start to decline in the second half of the year as supply constraints ease.”
The 2022 average is projected to rise to $74 before falling to $65 in 2023, the World Bank said.
But the report warns that “additional price spikes may occur in the near-term amid very low inventories and persistent supply bottlenecks.”
European and US stock markets sank on Thursday, bucking gains in Asia, as investors remain torn between economic optimism and ongoing coronavirus turmoil, while oil prices fell as the Suez Canal remained blocked by a grounded ship.
London, Paris, and Frankfurt stocks each declined by around one percent, as dealers dwelled on worries about rising Covid-19 infections and vaccine struggles across much of Europe.
Oil prices resumed falls as a giant container ship remained stuck in the Suez Canal, blocking one of the world’s busiest shipping routes.
Crude had rebounded by almost six percent on Wednesday in response the Suez news, after slumping by a similar proportion the previous day on worries about demand given continued Covid-19 lockdowns.
– ‘Sluggish vaccine rollout’ –
“Europe is trading broadly lower, extending losses for a second consecutive session as investors keep a close eye on the developing Covid situation,” said OANDA analyst Sophie Griffiths.
“The major economies in Europe such as Germany, France, Italy, and the Netherlands have all taken steps to tighten pandemic restrictions to combat rising Covid cases.
“Simultaneously, the vaccine rollout in the region has been particularly sluggish and marred by problems and chaos,” she added.
After a year-long surge, global equities appear to have run out of steam with expectations of a strong growth rebound stoking fear that prices will soar, forcing central banks to wind in the ultra-low monetary policies that have supported the rally.
And while the stock gains have been boosted by the rollout of inoculations — particularly in Britain and the United States — Europe’s stuttering launch has also been compounded by a jump in new cases that has led to lockdowns and containment measures being reimposed.
Briefing.com analyst Patrick J. O’Hare said, “for a broader market that has run really far, really fast, it looks to be ruminating about how much further things can realistically run.”
The drop in US first-time jobless claims by nearly 100,000 over the past week, along with a drop in continuing claims by 264,000, fit “the bill of an improving economy that requires increased hiring activity and reduced layoff activity”.
– ‘Remarkable’ Suez impact –
Oil prices dived more than one percent in a rollercoaster week for the commodity.
“What a single vessel can do to the global oil market is remarkable,” said Rystad Energy analyst Bjornar Tonhaugen.
“The stuck vessel in the Suez Canal created the visual definition of a supply route bottleneck, effectively disrupting one of the world’s busiest routes for all commodities.”
Oil, which struck a 14-month high earlier this month, has also suffered heavy selling in the past couple of weeks on fears about the impact on demand caused by new European lockdowns.
– Key figures around 1330 GMT –
London – FTSE 100: DOWN 1.1 percent at 6,636.85 points
Frankfurt – DAX 30: DOWN 1.0 percent at 14,470.41
Paris – CAC 40: DOWN 0.8 percent at 5,902.93
EURO STOXX 50: DOWN 1.0 percent at 3,793.68
New York – Dow: DOWN 0.5 percent at 32,267.97
Tokyo – Nikkei 225: UP 1.1 percent at 28,729.88 (close)
Hong Kong – Hang Seng: DOWN 0.1 percent at 27,899.61 (close)
Shanghai – Composite: DOWN 0.1 percent at 3,363.59 (close)
Euro/dollar: DOWN at $1.1808 from $1.1813 at 2200 GMT
Pound/dollar: UP at $1.3726 from $1.3686
Euro/pound: DOWN at 86.07 pence from 86.31 pence
Dollar/yen: UP at 109.06 yen from 108.73 yen
West Texas Intermediate: DOWN 3.3 percent at $59.17 per barrel
Brent North Sea crude: DOWN 2.9 percent at $62.56 per barrel
But analysts had been sceptical about a quick resolution, and doubts only grew when the meeting between OPEC and its allies, including Russia, was delayed.
They had been expected to meet via video conference to discuss oil production cuts on Monday but the meeting has been postponed to Thursday, the government of energy-rich Azerbaijan said at the weekend.
Trump surprised investors last week by tweeting: “I expect & hope” Riyadh and Moscow will be cutting back “approximately 10 Million Barrels, and maybe substantially more”.
On Friday, Moscow said it was prepared to discuss a reduction in the volume of about 10 million barrels a day.
But Stephen Innes, chief global markets strategist at AxiCorp, said that “traders remain extremely sceptical a deal will be forthcoming, and if one does occur, it will be woefully insufficient to stem the oil supply gushers.”
Oil prices plunged by almost a third Monday, the biggest drop since the 1991 Gulf War, as top exporter Saudi Arabia launched a price war after Russia blocked a bid to cut output.
In ferocious trading, both main crude contracts nosedived following Riyadh’s shock move to slash prices after the alliance between oil-exporting group OPEC and its partners fell apart.
At a meeting last week, Saudi Arabia led a push by OPEC ministers to reduce output to counter the impact of the coronavirus outbreak — but it hinged on agreement from the group’s allies, foremost among them Moscow.
However Russia, the world’s second largest oil producer, refused to tighten supply — and Riyadh then drove through the biggest cuts to prices in 20 years on Sunday, unleashing pandemonium on crude markets.
Saudi equities tanked more than nine percent in response with oil titan Aramco losing 10 percent.
The collapse in prices could have far-reaching consequences, observers warned, from battering revenues in energy-dependent countries, to triggering the cancellation of oil exploration projects and even sparking global deflation.
“A 30 percent plunge in crude oil prices is unprecedented and is sending a huge shockwave across financial markets,” said Margaret Yang, an analyst from CMC Markets.
In afternoon Asian trading, West Texas Intermediate was down about 30 percent while Brent crude slipped 26 percent.
The collapse in oil prices added to pressure on equity markets, which were already being hammered by the virus outbreak.
Bourses across Asia fell heavily, with Tokyo closing more than five percent lower and Sydney down over seven percent.
Stock markets in the energy-rich Gulf states nosedived at the start of trading Monday.
Trading was suspended on Kuwait’s Premier index after it fell 9.5 percent, while Dubai Financial Market dropped 9.0 percent and Abu Dhabi Securities Exchange shed 7.1 percent.
Energy-linked stocks were among the hardest hit in Asia with Hong Kong-listed CNOOC tumbling 16 percent and PetroChina down 10 percent.
In Singapore, Sembcorp Marine — which works in the energy exploration sector — was down over 10 percent.
Saudi Arabia has cut its price for April delivery by $4-6 a barrel to Asia and $7 to the United States, with Aramco selling its Arabian Light at an unprecedented $10.25 a barrel less than Brent to Europe, Bloomberg said.
Jeffrey Halley, senior market analyst at OANDA, said that “Saudi Arabia seems intent on punishing Russia.
“Oil prices… will likely be capped over the next few months as coronavirus stalls economic growth, and Saudi Arabia opens the pumps and offers huge discounts on its crude grades.”
Singapore’s OCBC Bank said the global economy could be hit by deflation if crude stays around the $30 mark for an extended period, as oil prices play a key role in driving inflation.
This could encourage authorities to loosen monetary policy as they try to stop an uncontrollable deflationary cycle, the bank said.
Yang of CMC Markets said if prices fall to extremely low levels, Russia might ultimately come back to the negotiating table with OPEC and agree on an output cut to shore up markets.
The new developments are reminiscent of the oil price war that erupted in 2014 and sent oil prices crashing to less than $30 a barrel.
The price fall then battered revenues in the Gulf countries, forcing them to resort to austerity measures and borrowing to plug budget deficits.
Oil prices tumbled Friday on expectations OPEC next week won’t take aggressive action to boost oil prices, while global equities pulled back on trade war worries.
Both the US and European benchmark contracts for oil fell ahead of the December 5 meeting of the Organization of the Petroleum Exporting Countries in Vienna where analysts expect the cartel to stick with a current production agreement, but not to deepen cuts.
“The market may be disappointed that OPEC is not entertaining additional production cuts,” said Andy Lipow of Lipow Oil Associates, adding that the group is “in a difficult position” given weak demand and higher output in the US and other regions.
Equity markets ended lower following a lacklustre session. US bourses pulled back from records in a holiday-shortened session with low trading volumes.
Analysts said stocks were dragged lower by increased US-China trade friction as Beijing threatened unspecified retaliation after President Donald Trump signed into law legislation supporting Hong Kong pro-democracy protesters.
The market feels “a little angst” on US-China trade relations, although the modest drop suggests few fears that a preliminary US-China trade deal will fall apart, said Briefing.com analyst Patrick O’Hare, who added that low trading volume sharpened the decline.
The pullback also came as the holiday shopping season got started in earnest with the “Black Friday” promotions after Thanksgiving.
Walmart rose slightly, but most other leading US retailers fell, including Target and Amazon, as consumers shift ever more of their dollars to e-commerce from traditional stores
Elsewhere, London underperformed its eurozone peers in response to a stronger pound which was boosted by expectations that Britain’s ruling Conservatives will win next month’s general election.
This would likely allow Prime Minister Boris Johnson to push through his Brexit agreement and avoid a no-deal divorce from the European Union.
On the corporate front, shares in Daimler dropped 1.5 percent. on the Frankfurt bourse as the German luxury automaker said it would slash at least 10,000 jobs worldwide in a major cost-cutting drive to help finance the switch to electric cars.
Shares in UK online supermarket Ocado surged after the company announced a deal to provide artificial intelligence (AI) capabilities to Japanese retail giant Aeon.
Key Figures Around 1900 GMT
New York – Dow: DOWN 0.4 percent at 28,051.41 (close)
New York – S&P 500: DOWN 0.4 percent at 3,140.98 (close)
New York – Nasdaq: DOWN 0.5 percent at 8,665.47 (close)
London – FTSE 100: DOWN 0.9 percent at 7,346.53 (close)
Frankfurt – DAX 30: DOWN 0.1 percent at 13,236.38 (close)
Paris – CAC 40: DOWN 0.1 percent at 5,905.17 (close)
EURO STOXX 50: FLAT at 3,703.58 (close)
Tokyo – Nikkei 225: DOWN 0.5 percent at 23,293.91 (close)
Hong Kong – Hang Seng: DOWN 2.0 percent at 26,346.49 (close)
Shanghai – Composite: DOWN 0.6 percent at 2,871.98 (close)
Euro/dollar: UP at $1.1017 from $1.1009
Pound/dollar: UP at $1.2933 from $1.2912
Euro/pound: DOWN at 85.18 pence from 85.27
Dollar/yen: DOWN at 109.47 yen from 109.51
Brent North Sea crude: DOWN 2.3 percent at $62.43 per barrel
West Texas Intermediate: DOWN 5.1 percent at $55.17 per barrel
Oil prices fell more than one percent on Monday after Saudi Arabia’s de facto leader said war with Iran would destroy the world economy and hinted instead at a non-military solution.
Washington, Riyadh, Berlin, London and Paris blame Iran for attacks that damaged the Saudi oil sector on September 14 and forced the world’s largest crude exporter to sharply reduce production.
Elsewhere Monday, stock markets diverged as traders tracked the latest twists and turns regarding the US-China trade war. The dollar was mixed against main rivals.
“In terms of geopolitical concerns, common sense is prevailing for now in Saudi Arabia,” noted analyst Naeem Aslam at traders ThinkMarkets, in reference to the comments by Saudi Arabia’s crown prince in an interview with CBS show “60 minutes” broadcast over the weekend.
Mohammed bin Salman said war would be catastrophic for global growth.
“Oil supplies will be disrupted and oil prices will jump to unimaginably high numbers that we haven’t seen in our lifetimes,” the prince said.
“The region represents about 30 percent of the world’s energy supplies, about 20 percent of global trade passages, about four percent of the world GDP. Imagine all of these three things stop,” he said.
“This means a total collapse of the global economy, and not just Saudi Arabia or the Middle East countries.”
Iran’s oil minister meanwhile on Sunday ordered his country’s energy sector to be on high alert to the threat of “physical and cyber” attacks.
Bijan Namdar Zanganeh said “it is necessary for all companies and installations of the oil industry to be on full alert against physical and cyber threats”, in a statement published on the oil ministry’s Shana website.
Tehran has denied any link to the Saudi strikes, which were claimed by Huthi rebels in Yemen. Iran supports the rebels against a Saudi-led coalition that has been fighting the Huthis since 2015.
“Oil has been amazing everyone over the last couple of weeks, having surged on the back of the attack on the Saudi oil facilities before reversing the entirety of these gains, despite the country temporarily losing half its output,” Craig Erlam, senior market analyst at Oanda trading group, said Monday.
“Traders are clearly not particularly concerned about risk premiums in oil… Instead, the focus again seems to be shifting back to the demand dynamics and the risk of further downgrades as the global economic slowdown takes hold,” he added.
US-China trade war
Elsewhere Monday, investors digested reports in US media that President Donald Trump is mulling severe new restrictions on investment in China.
Shanghai and Tokyo stock markets slumped the day before a week-long patriotic holiday begins in China, despite assurances from the US Treasury that there were no plans to stop Chinese companies from listing on US exchanges.
On Tuesday the Asian giant celebrates 70 years since the founding of communist China, with markets closed from October 1 to 7, while planned pro-democracy protests in Hong Kong threaten to disrupt festivities.
Shanghai closed down 0.9 percent as some investors took profits, with uncertainty fuelled by fears of an escalation in the US-China trade war that has raged for more than a year.
“The Sino-US trade negotiations have been full of twists and turns,” said Zhang Gang, an analyst with Central China Securities.
“You don’t know what remarks Trump would make in the next seven days, or what variables there will be from the US side. So (investors) have set themselves in a low-key, waiting position.”
Key figures around 1100 GMT
Brent North Sea crude: DOWN 1.3 percent at $61.12 per barrel
West Texas Intermediate: DOWN 1.0 percent at $55.34 per barrel
London – FTSE 100: DOWN 0.3 percent at 7,406.37 points
Frankfurt – DAX 30: DOWN 0.1 percent at 12,368.83
Paris – CAC 40: FLAT at 5,639.56
EURO STOXX 50: FLAT at 3,546.40
Hong Kong – Hang Seng: UP 0.5 percent at 26,092.27 (close)
Shanghai – Composite: DOWN 0.9 percent at 2,905.19 (close)
Tokyo – Nikkei 225: DOWN 0.6 percent at 21,755.84 (close)
London – FTSE 100: UP 0.1 percent at 7,433.79
New York – Dow: DOWN 0.3 percent at 26,820.25 (Friday’s close)
Euro/dollar: DOWN at $1.0920 from $1.0941 at 2030 GMT
OPEC members and other oil-producing countries mulled cuts in output Thursday to prop up plunging prices, defying repeated calls by US President Donald Trump that they keep the taps open.
“We’re looking for a sufficient cut to balance the market, equally distributed between countries,” Saudi oil minister Khalid al-Falih told reporters ahead of an OPEC meeting in the Austrian capital.
Oil ministers from 20 or so countries are in Vienna for two days of meetings — first, the 15 members of OPEC, then a wider group including countries outside the cartel — to discuss how to counter the tumble in prices over the past two months.
The price of a barrel of Brent, the European benchmark, fell four percent to below $60 Thursday, hit by the Saudi comments which were taken on the markets to be very cautious and concerns over an economic slowdown.
On Wednesday, Trump took to Twitter to urge producers to keep pumping.
“Hopefully OPEC will be keeping oil flows as is, not restricted. The World does not want to see, or need, higher oil prices!” said Trump, who has repeatedly accused the cartel of keeping prices artificially high.
Saudi minister al-Kalih pointedly said Washington should back off.
“We don’t need permission from anyone to cut,” he said.
The US “is not in a position to tell us what to do,” he added.
At the end of 2016, OPEC’s regular members joined forces with other countries — most notably Russia — to scale back output in a bid to reduce a glut that was weighing on prices.
The coordinated move — which has since been extended — stimulated a long rally in oil prices right up until October 2018.
Over the past two months, however, prices have plunged again.
Cuts on the cards?
In order to try and counter this, the so-called OPEC+ — who together account for more than half of the world’s oil output — is discussing renewing the pact or perhaps cutting output still further.
All the signals are that more reductions in output are on the cards, despite the pressure from Trump, who argues that higher energy costs will choke off the economy.
“A million (barrels cut) would be ideal,” the Saudi minister said. “Ideally, everyone should join equally. I think that’s the fair and equitable solution.”
OPEC daily output stood at 32.99 million barrels in October, according to the International Energy Agency.
However, OPEC’s third-biggest producer Iran wants to be exempted from any such measures.
Given the economic sanctions being reimposed by the United States, the Islamic republic ” doesn’t join any agreement for cutting production because of the special situation Iran faces,” oil minister Bijan Namdar Zanganeh said.
Zangeneh said the estimated surplus currently on the market amounted to 1.3-2.4 million barrels per day.
Ideally, “the price would be better to stand at $60-70. That is acceptable for most OPEC countries.”
Trump’s intervention complicates matters.
OPEC kingpin Saudi Arabia, in particular, finds itself in an especially delicate position in the wake of the murder of opposition journalist Jamal Khashoggi.
Trump has continued to support the kingdom despite worldwide outrage over the murder but he is at the same time keeping up the pressure for lower prices.
“The big unknown is how President Trump will react to any production cuts,” said analysts at ING.
Iran’s Zangeneh said it was the first time a US president was trying to tell OPEC what to do.
“They should know that OPEC is not part of their Secretary of Energy.”
Most OPEC members felt the same way, but “some members are going along with US policy,” he said.
Negotiations between OPEC members are fraught, however, as some feel that Saudi Arabia wields too much clout in setting policy.
Iran has accused Saudi Arabia of being in thrall to the US.
In a surprise move on Monday, Qatar — which has been an OPEC member since 1961 — said it would quit the cartel next month in order to focus on gas production.
Doha accounts for only around two percent of OPEC output but the move caught the headlines given the political overtones.
Qatar minister Saad Sherida Al-Kaabi said he had met a number of other OPEC ministers, but not his Saudi Arabian colleague.
“I don’t think they want to meet me. They are blockading our country,” he told journalists.
Qatar has been isolated by a group of countries led by Saudi Arabia since June 2017, in the worst political fallout between the energy-rich Gulf powers.
Oil prices slumped Friday to lows not seen since last year as concerns over high crude supplies and uncertain economic growth triggered massive selling.
The petroleum slump, which took major oil contracts down to their lowest level since October 2017, comes as oil output remains high in the United States, Russia and Saudi Arabia and as some forecasters have trimmed their outlook for global growth, due in part to the US-China trade fight.
US oil benchmark West Texas Intermediate dropped $4.21 to $50.42 a barrel for January delivery, a decline of 7.7 percent.
In London, Brent oil futures for January delivery, slid 6.1 percent to $58.80 per barrel.
“The truth of the matter remains that rising global crude supply coupled with worrying signs of slowing demand have written a recipe for disaster for the oil markets,” said Lukman Otunuga, a research analyst at FXTM.
Global stock markets were mixed, with major US indices retreating in part due to worries about lower oil prices and weak global growth.
Bourses in Paris and Frankfurt notched modest gains, while London, Shanghai and London all fell.
High global oil production compared to demand was the top reason for Friday’s selling, while the outlook for a weakening world economy led investors to conclude that growth would not be strong enough to soak up the surplus.
The retreat comes ahead of a meeting of the Organisation of the Petroleum Exporting Countries in Vienna on December 6.
Some analysts view the organisation as constrained following heavy pressure from US President Donald Trump on Saudi Arabia.
Earlier this week, Trump thanked Saudi Arabia for low prices and decided to essentially overlook the Central Intelligence Agency’s reported conclusion over Crown Prince Mohammed bin Salman’s involvement in the gruesome murder of journalist Jamal Khashoggi, a stance that has outraged White House critics.
“Although most analysts claim that this has to do with supply overhang and increased production from Russia and Saudi Arabia, the bottom line is that the US President keeps pushing for lower prices,” said Fiona Cincotta, senior market analyst at City Index trading group.
“While this is the case it will be difficult to see a return to oil at a higher level unless oil cartel OPEC decides on a major output cut at its next meeting.”
But Andy Lipow of Lipow Oil Associates predicted the “Saudis will decide in their best interest to cut production,” adding that “it will not have an impact on the relationship with Washington because the US already said how this relationship was important and how important was the weapon business with the Saudis.”
Still, Friday’s drop in prices reflects market concern that OPEC production cuts are “not going to be enough to support prices,” Lipow added.
The drop in oil prices reverberated in equity markets, with oil giants Chevron, Royal Dutch Shell and Total all shedding three percent or more on their local bourses.
Chinese shares also stumbled as Shanghai slumped by more than two percent, with the tech sector hit hard by a Wall Street Journal report that Washington is urging its allies to avoid using equipment from Chinese telecoms giant Huawei.
Worsening trade tensions between the United States and China have shattered confidence on global trading floors.
Key figures around 1930 GMT
Oil – West Texas Intermediate: DOWN $4.21 at $50.42 per barrel
Oil – Brent Crude: DOWN $3.80 at $58.80 per barrel
New York – Dow: DOWN 0.7 percent at 24,285.95 (close)
New York – S&P 500: 0.7 percent at 2,632.56 (close)
New York – Nasdaq: DOWN 0.5 percent at 6,938.98 (close)
London – FTSE 100: DOWN 0.1 percent at 6,952.86 points (close)
Frankfurt – DAX 30: UP 0.5 percent at 11,192.69 (close)
Paris – CAC 40: UP 0.2 percent at 4,946.95 (close)
EURO STOXX 50: UP 0.3 percent at 3,137.21 (close)
Tokyo – Nikkei 225: Closed Friday for holiday
Hong Kong – Hang Seng: DOWN 0.4 percent at 25,927.68 points (close)
Shanghai – Composite: DOWN 2.5 percent at 2,579.48 points (close)
Pound/dollar: DOWN at $1.2805 from $1.2877 at 2200 GMT Thursday
Global oil prices fell Friday after top producer Saudi Arabia signalled a likely boost in supply as soon as the third quarter, and world stock markets were mixed over the sudden US move to cancel the summit with North Korea.
Saudi oil minister Khaled al-Faleh said at an economic conference in Russia that a gradual output increase could happen in the second half of the year to prevent any supply shocks, according to the RIA Novosti agency.
OPEC and 10 other oil producers agreed at the end of 2016 to cut output by 1.8 million barrels per day to clear a glut that had led to a collapse in prices in 2014.
The deal, which has been extended until the end of 2018, has led to that glut disappearing and prices have recovered from around $30 per barrel to around $80.
The Saudi comments sent oil prices tumbling by over three percent. Brent Crude fell to $76.43 per barrel and WTI Crude to $68.03 around 1545 GMT.
Russia’s oil tsar Alexander Novak said ministers from the OPEC cartel and other members of the production pact would discuss how much to increase production next month.
“If we come to a common opinion that it is necessary” to increase supply it “should probably take place from the third quarter,” Novak said, according to RIA Novosti.
Uncertainties about supplies from Iran and Venezuela have led prices to spike higher in recent weeks, with industry players warning they could jump to $100 per barrel.
In stocks, London and Frankfurt indices finished the week slightly higher, while Paris was essentially flat at the close as investors hesitated amid the confusing series of reports on geopolitics.
In New York, the Dow slipped 0.4 percent in mid-day trading Friday as falling crude prices dragged energy stocks lower and investors continued to digest the US-North Korea situation and US-China trade.
Shortly after the open, President Donald Trump had said the summit with North Korea that he had called off just 24 hours before could go ahead after all as talks with Pyongyang were continuing.
But investors were contending with the possibility that the summit’s cancellation could cause Trump to be more aggressive in trade talks with China.
Asia down on Trump move
Asian markets mostly fell Friday after the news that Trump had abruptly axed next month’s summit with North Korean leader Kim Jong Un.
For its part North Korea declared that it is willing to talk to the United States “at any time”, while China urged both sides to show restraint.
“The focus has been firmly centred upon Donald Trump, with his decision to cancel the June meeting with Kim Jong Un bringing about a return to the risk-off sentiment,” said analyst Joshua Mahony at trading firm IG.
Markets have been jittery this week as the US president had warned in recent days that he could cancel the summit, while also voicing his displeasure at a deal to avert a trade war with China and threatening tariffs on car imports.
Thursday’s summit cancellation took many by surprise — including North and South Korean officials — and fuelled concerns about the future of a rapprochement that has had many hoping for peace on the divided peninsula.
“It looks like we are back to fire and fury as the modus operandi for the White House again after President Trump (threatened) a new 25 percent car import tariff and cancelled the summit with North Korea,” said Greg McKenna, chief market strategist at AxiTrader.
Key figures around 15:45 GMT
New York – Dow: DOWN 0.4 percent at 24,725.08
London – FTSE 100: UP 0.18 percent at 7,730.28 points (close)
Paris – CAC 40: DOWN 0.1 percent at 5,542.55 (close)
Frankfurt – DAX 30: UP 0.65 percent at 12,938.01 (close)
EURO STOXX 50: DOWN 0.18 percent at 3,515.36
Tokyo – Nikkei 225: UP 0.1 percent at 22,450.79 (close)
Hong Kong – Hang Seng: DOWN 0.6 percent at 30,588.04 (close)
Shanghai – Composite: DOWN 0.4 percent at 3,141.30 (close)
Euro/dollar: DOWN at $1.1662 from $1.1720 at 2100 GMT
Pound/dollar: DOWN at $1.3318 from $1.3381
Dollar/yen: UP at 109.32 yen from 109.26 yen
Oil – Brent North Sea: DOWN $2.36 at $76.43 per barrel
Oil – West Texas Intermediate: DOWN $2.68 at $68.03
US President Donald Trump criticized the Organization of Petroleum Exporting Countries (OPEC) Friday for what he said were artificially high oil prices, adding they “will not be accepted.”
His comments on Twitter came as ministers from some top global crude producers met in Saudi Arabia to discuss maintaining limits on oil production.
“Looks like OPEC is at it again,” Trump tweeted. “With record amounts of Oil all over the place, including the fully loaded ships at sea, Oil prices are artificially Very High! No good and will not be accepted!”
OPEC producers and non-OPEC countries struck a deal in 2016 to trim production by 1.8 million barrels per day to reduce a global glut of oil.
The deal, which is due to run out at the end of this year, has succeeded in boosting oil prices above $70 a barrel from below $30 a barrel in early 2016.
Oil prices rose more than 1 per cent early on Monday, pushed up by tensions in the Middle East where top crude exporters are cutting ties with Qatar.
Saudi Arabia, United Arab Emirates, Egypt and Bahrain have cut ties with top Liquefied Natural Gas and condensate exporter, Qatar accusing the state of supporting extremism and undermining regional stability.
The U.S. west Texas intermediate futures was trading at 48.34 dollars per barrel in early trade, higher by 68 cents.
Brent Crude Oil futures rose 70 cents or 1.4 per cent better to 50.65 dollars per barrel.
Traders say crude prices have also received support from a tightening spot crude market.