Oil price falls after Iran’s attack on US base in Qatar this morning, Aussie dollar up

ABC NEWS (Australia)

News of Iran’s attack on a US base in Qatar caused the oil price to fall this morning, returning to where it was before Israel attacked Iran on 12 June. And the Aussie dollar is also up, almost a full cent on last night.

Transcript

00:00It wasn't Donald Trump's ceasefire declaration that caused the oil price to fall this morning,

00:06but news of Iran's attack on the American base in Qatar, which was not seen to be serious,

00:11and a sign that there wasn't going to be a war.

00:14The ceasefire post from Trump came later, and the price fell a bit more.

00:19So tonight, West Texas crude is down almost 11% from where it was this time last night.

00:23And basically, the oil price has returned to where it was before Israel attacked Iran on June the 12th.

00:30It's as if the whole thing didn't happen.

00:32The other context is that the oil price has been trending lower for three years,

00:36ever since the spike from the Russian invasion of Ukraine washed through.

00:41And the key reason for that is a build-up in OPEC's spare capacity,

00:45as interest rates have increased around the world and economic growth has slowed,

00:49and with it, demand for energy.

00:51And that's not expected to end any time soon.

00:54The International Energy Agency is predicting that growth in supply of oil this year

00:58will be a million barrels a day greater than growth in demand.

01:02And supply growth will outstrip demand growth next year as well.

01:05So aside from geopolitics, the pressure on the oil price is down.

01:10Energy stocks were dumped on the share market today, as you might expect,

01:13but users of energy, like airlines, did well,

01:16especially the refloated Virgin Australia,

01:18which closed its first day well up on the $2.90 that it floated at.

01:24Global share markets all went for a gallop

01:26as optimism about the peace in the Middle East broke out.

01:29And the Aussie dollar is also up, almost a full cent on last night.

01:34And that's finance.

01:35Thank you very much.

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