Australian shares are expected to open slightly lower — following a volatile session on Wall Street, weighed down by a plunge in oil prices.

Markets at 8:20am (AEDT): ASX SPI 200 -0.1pc at 5,826, ASX 200 (Tuesday's close) +0.3pc at 5,834

ASX SPI 200 -0.1pc at 5,826, ASX 200 (Tuesday's close) +0.3pc at 5,834 AUD: 72.14 US cents, 55.63 British pence, 63.9 Euro cents, 82.04 Japanese yen, $NZ1.07

AUD: 72.14 US cents, 55.63 British pence, 63.9 Euro cents, 82.04 Japanese yen, $NZ1.07 US: Dow Jones -0.4 at 25,294, S&P 500 -0.2pc at 2,722, Nasdaq flat at 7,201

US: Dow Jones -0.4 at 25,294, S&P 500 -0.2pc at 2,722, Nasdaq flat at 7,201 Europe: FTSE flat at 7,054, DAX +1.3pc at 11,472, CAC +0.9pc at 5,102, Euro Stoxx 50 +1pc at 3,225

Europe: FTSE flat at 7,054, DAX +1.3pc at 11,472, CAC +0.9pc at 5,102, Euro Stoxx 50 +1pc at 3,225 Commodities: Brent crude -7.4pc at $US64.88/barrel, spot gold +0.1pc at $US1,201.77/ounce, iron ore -0.4pc at $US75.73/tonne

Meanwhile, the Australian dollar has strengthened to 72.1 US cents.

But it fell to 55.6 British pence, after the United Kingdom confirmed it had reached agreement with the European Union on the wording of their Brexit divorce deal.

Concerns about oil supply sink prices

The oil market has descended into bear market territory, amid ongoing worries about weakening global demand and oversupply.

Overnight, the price of Brent crude fell sharply, down 7.4 per cent to $US64.88 per barrel.

Brent crude prices have dropped 25 per cent since peaking at a four-year high in early October. Back then, each barrel was worth $US82.29.

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"It's like a run on the bank," said Phil Flynn, analyst at Price Futures Group.

"It's getting to the point where it doesn't seem to be about fundamentals anymore, but a total collapse in price."

Traders said the selling was an extension of Monday's, which was triggered after US President Donald Trump posted a tweet meant to put pressure on the Organisation of the Petroleum Exporting Countries (OPEC) not to cut supply to prop up prices.

Mr Trump's tweet followed weekend reports that Saudi Arabia was considering a production cut at the upcoming OPEC meeting in December, on increased alarm that supply has started to outpace consumption.

Saudi Energy Minister Khalid al-Falih said, on Monday, that OPEC agreed there was a need to cut oil supply next year by around 1 million barrels per day from October levels to prevent oversupply.

Even as the Saudis have promised to reduce output, US oil production reached 11.6 million barrels per day in the most recent week, a new record.

"They can't make up their minds on a cutback or not," said Bob Yawger, director of energy futures at Mizuho.

"These strange bedfellows no longer seem like they're in the same bed anymore."

Tech recovers, while Boeing drags

The Dow Jones index fell 101 points, or 0.4 per cent, to 25,286 by 8:20am (AEDT).

The benchmark S&P 500 lost 0.2 per cent to 2,722, with energy (-2.4pc) being the worst performing sector by far.

The Nasdaq was flat at 7,200, after drifting in and out of negative territory throughout the day.

The tech-heavy index was weighed down by Apple, which saw its share price fall — for the second straight day — by a further 0.75 per cent.

Despite a rebound in technology stocks, and renewed hope for progress in US-China trade talks, these positives were offset by a drop in energy stocks and Boeing's share price.

The aviation company reported a 37 per cent increase in 737 deliveries in October but its shares fell on concerns related to last month's deadly crash of a 737 operated by Indonesia's Lion Air.

Boeing fell 2.6 per cent, providing the biggest drag on the Dow Jones index.

Mr Trump is expected to meet China's President Xi Jinping at a G20 summit in Argentina in late-November, in an ongoing effort to solve trade differences that have troubled markets for much of the year.

Tariff-vulnerable industrial stocks were up by a slight 0.3 per cent, led by General Electric and Caterpillar.

"(Trade is) still an open question. It's still a work in progress," said Bucky Hellwig, senior vice president at BB&T Wealth Management.

"It will continue to dog the markets short term until it gets worked out."

ABC/Reuters