Oil Plunges as Iran pulled-out of Oil-freeze Discussions

Oil Plunged to almost two months low as Saudi Arabia and Iran pulled out of oil-freeze discussions to cap production on Sunday.

Currencies of oil exporting nations also tumbled, followed by Global stocks as demand for safe haven assets boosted the yen and Treasuries.

The Canadian dollar and Russia’s ruble posted the biggest losses, while U.S. oil, West Texas Intermediate plunged 6.8 percent during Asia trading session on Monday.

Japanese yen rose to 17 month high against the U.S. dollar after G20 finance ministers oppose restraining the safe haven gains. The Stoxx Europe 600 and U.S. futures declined, with MSCI Asia Pacific index of shares plunging from a four months high.

Global equities rebounded from multi-year lows two months ago amid prospect oil producers would freeze production to address global glut.

“There was an expectation baked into prices that you’d see a production freeze, and with no resolution, it adds to negative drivers for the oil price, commodities and commodity currencies,” said Mark Lister, head of private wealth research at Craigs Investment Partners in Wellington, which manages about $7.2 billion. “We will probably see equity markets go off the boil as some of that recent strength in the materials and energy stocks unwinds. The reporting season remains in focus this week.”