Oil prices tumbled on Monday after US President Donald Trump announced an "energy ceasefire" between Russia and Ukraine, easing fears of supply disruptions even as Houthi attacks on Saudi Arabia continued.
Crude sinks, stocks rise
Both main crude contracts sank more than one percent on Monday morning. Brent crude was down 1.2% at $103.48 per barrel, while West Texas Intermediate fell 1.5% to $90.50. The drop reversed an initial spike triggered by weekend Houthi attacks on Saudi Arabia.
Most stock markets rose on the news, with Hong Kong, Sydney, Singapore, Wellington and Manila all trading higher. Seoul and Taipei bucked the trend, dragged down by chipmaker losses, while Tokyo was closed for a holiday and US futures pointed sharply higher.
A claimed deal, with caveats
Trump posted on Truth Social early on Sunday: "Effective immediately, there is an ENERGY CEASEFIRE in the War between Russia and Ukraine. Both parties have agreed. Do not break it!" Ukraine's President Volodymyr Zelensky appeared surprised by the announcement, said he was seeking further details, and added that Ukraine supports a ceasefire and that Russia should too. Russia has yet to confirm any agreement.
Analysts remain cautious. As SPI Asset Management's Stephen Innes put it, the market is no longer willing to pay a full geopolitical premium on every headline, with tight physical supplies keeping Brent above $100 while futures refuse to treat each escalation as a new inflation shock.
Investors now turn to key US inflation and retail sales data due this week, which will feed into the Federal Reserve's interest-rate decision at the end of October.
Sources: Oil prices subside after Trump hails 'energy ceasefire' between Russia and Ukraine (AFP via IOL) | Oil prices fall on Trump's 'energy ceasefire' claim, Asian markets mixed (Malay Mail)
Crude sinks, stocks rise
Both main crude contracts sank more than one percent on Monday morning. Brent crude was down 1.2% at $103.48 per barrel, while West Texas Intermediate fell 1.5% to $90.50. The drop reversed an initial spike triggered by weekend Houthi attacks on Saudi Arabia.
Most stock markets rose on the news, with Hong Kong, Sydney, Singapore, Wellington and Manila all trading higher. Seoul and Taipei bucked the trend, dragged down by chipmaker losses, while Tokyo was closed for a holiday and US futures pointed sharply higher.
A claimed deal, with caveats
Trump posted on Truth Social early on Sunday: "Effective immediately, there is an ENERGY CEASEFIRE in the War between Russia and Ukraine. Both parties have agreed. Do not break it!" Ukraine's President Volodymyr Zelensky appeared surprised by the announcement, said he was seeking further details, and added that Ukraine supports a ceasefire and that Russia should too. Russia has yet to confirm any agreement.
Analysts remain cautious. As SPI Asset Management's Stephen Innes put it, the market is no longer willing to pay a full geopolitical premium on every headline, with tight physical supplies keeping Brent above $100 while futures refuse to treat each escalation as a new inflation shock.
Investors now turn to key US inflation and retail sales data due this week, which will feed into the Federal Reserve's interest-rate decision at the end of October.
Sources: Oil prices subside after Trump hails 'energy ceasefire' between Russia and Ukraine (AFP via IOL) | Oil prices fall on Trump's 'energy ceasefire' claim, Asian markets mixed (Malay Mail)
