According to reports from Reuters, the pact fell apart "when Saudi Arabia demanded that Iran join the agreement." Iran had previously stated it would not consider cutting production until it reach its 500,000 barrels a day quota it was doing before sanctions were slapped on the nation for its nuclear program. Many felt going into this meeting that would be s sticking point. Brent crude was down 4.5% to $41.10 while U.S. crude was trading at $38.26.
Japanese shares were hit by concerns over the devastating earthquake that hit the southwest part of the country. The big quake registered at 7.3 early Saturday, following a smaller one Thursday. Reuters noted:
The plunge in crude oil prices took a large slice out of commodity currencies.
The greenback gained 1.1 percent against the Canadian dollar to C$1.2961 CAD=D4 while the Australian dollar shed 0.8 percent to $0.7663 AUD=D4.
The Japanese yen, a perceived safe-haven, rose on the turmoil, with the dollar skidding 0.6 percent to 108.07 yen JPY=.
Meanwhile, the Nikkei 225 dropped 2.7% until investor figured out how bad the quake affected an area known for its manufacturing. In other news, economic data out Friday in the U.S. showed further slowing as industrial production declined more than expected. economists were looking for 0.1% drop but the data showed 0.6% downturn last month, the sixth downturn in the last seven months./ Consumer sentiment added to the gloom dropping to its lowest level in seven months. Gold managed a 0.2% gain to $1,233.70. The Shanghai Composite Index slipped 1.3% and South Korea’s Kospi was off 0.5%.
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