Oil tumbles after deadlock in Doha

Al eyes were on the Doha meeting over the weekend where oil producing countries met to negotiate an output freeze.

Failure to reach a deal to limit oil production and Iran’s refusal to join any agreement disappointed the markets and oil prices tumbled at the open on Monday. Meanwhile, commodity-linked currencies such as the Canadian and Australian dollars, also suffered.

US oil futures fell 6.7 percent to $37.68 a barrel, while Brent futures slipped 6.7 percent to $40.18 a barrel. Prior to the meeting, oil pries were rising last week to above $40 a barrel due to hopes for a deal this weekend.

Commodity currencies such as the Canadian dollar weakened on the news while investors rushed to buy safe haven currencies like the Japanese yen.

The Canadian dollar fell 1 percent as USDCAD rose to $1.2957 Canadian dollars. AUDUSD eased to $0.7594, also down 1 percent.

The yen gains on safe haven flows, pushing USDJPY to a near 18-month low of 107.63 yen, while EURJPY fell to a three-year low to below 122.00 yen, for the first time since April 2013.

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