As the New York financial market experienced significant turbulence on Monday, international oil prices also plummeted.
Mirroring the sharp decline in the New York stock market, global oil prices tumbled dramatically due to the shock of U.S. President Donald Trump criticizing Fed Chair Jerome Powell.
As Powell faced mounting pressure, gold prices soared past 3,400 USD per ounce for the first time in history. The U.S. dollar, typically considered a safe-haven asset, and oil prices plunged.
Typically, oil prices, which are denominated in dollars, rise when the dollar weakens. However, Trump’s attack on Powell prompted investors to seek safe assets and avoid risky investments, causing a simultaneous crash in oil prices and the dollar’s value.
Fears that Trump’s pressure on Powell could destabilize the global economy further stoked concerns about oil demand.
Moreover, progress in nuclear negotiations between the U.S. and Iran alleviated worries about potential reductions in Iranian oil exports, contributing to the downward pressure on oil prices.
Following the Easter holiday, the international oil market reopened after three days and shifted sharply downward.
Brent crude, the global oil benchmark, settled at 66.26 USD per barrel, shedding 1.70 USD (2.50%) from the previous session.
West Texas Intermediate (WTI), the U.S. benchmark, saw its front-month May contract slide 1.60 USD (2.47%) to close at 63.08 USD per barrel.
