Oil price craters on reports G7 could cut 400 million barrels: Crypto market reacts

Oil prices fell as new reports suggested the G7 could cut output by up to 400 million barrels.

The global markets have been under severe anxiety over the past week in the background of the ongoing war between Iran, the US and Israel. The military conflict has wider geopolitical and economic consequences, and many countries are already feeling the effects.

As Crypto potato It was previously reported that the price of crude oil rose sharply on Sunday evening, reaching almost 120 dollars per barrel. This caused significant volatility in the stock futures and crypto markets, which declined when they occurred. But new reports are turning the tide.

New report lowers oil prices

As the Financial Times reports, G-7 members should discuss the issue of joint extraction of oil resources at an emergency meeting on Monday. Citing sources familiar with the matter, the report said the call was scheduled for around 13:30 CET and was initiated by France.

US oil prices fell immediately after the news broke, falling to $101 a barrel within hours.

Kobeisy’s letter explains this issue and says:

US oil prices are currently attempting one of their biggest swings in history. (…) US oil prices are approaching $100/barrel and are now up 12% a day, wiping out more than half of their daily profits.”

Bitcoin price is trying to recover

After hitting an intraday low of around $65,600, Bitcoin price is trying to recover, currently at $67,400. The cryptocurrency rose to $68,000, but buyers were unable to sustain the move.

Oil prices have a significant impact on many markets, and crypto is no exception. Widely considered a volatile risk segment, prices are often negatively affected by economic turbulence.

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According to CoinGecko, at the time of writing, the total market capitalization is $2.38 trillion, up 0.2% in the last 24 hours.