World oil prices tumble

World oil prices tumbled on Tuesday to their lowest levels in more than a year, hit by fears over the outlook for the global economy and doubts over producers’ resolve to cut output.

The plunge in oil prices came on a mixed day for global stocks, with European and Asian markets falling in the aftermath of Monday’s Wall Street rout.

US stocks mustered modest gains, but finished well below their session peaks as worries about a possible US government shutdown and a likely Federal Reserve rate hike weighed on sentiment.

“The psychology of the market is very fragile,” said Tom Cahill of Ventura Wealth Management, who said the budget sparring between congressional Democrats and US President Donald Trump added to the list of question marks.

Cahill was not cheered by the idea of a Fed pausing its course of rate increases.

“If the Fed doesn’t hike rates, that would be concerning because it would mean the institution miscommunicated in a substantial way with the market,” Cahill said. “It would be problematic for the future announcements by the Fed.”

 

World oil prices tumble

World oil prices tumbled on Tuesday to their lowest levels in more than a year, hit by fears over the outlook for the global economy and doubts over producers resolve to cut output. The plunge in oil prices came on a mixed day for global stocks, with European and Asian markets falling in the aftermath of Mondays Wall Street rout. US stocks mustered modest gains, but finished well below their session peaks as worries about a possible US government shutdown and a likely Federal Reserve rate hike weighed on sentiment. The psychology of the market is very fragile, said Tom Cahill of Ventura Wealth Management, who said the budget sparring between congressional Democrats and US President Donald Trump added to the list of question marks. Cahill was not cheered by the idea of a Fed pausing its course of rate increases. If the Fed doesnt hike rates, that would be concerning because it would mean the institution miscommunicated in a substantial way with the market, Cahill said. It would be problematic for the future announcements by the Fed.