The price of oil on a roller coaster
Oil prices have fluctuated extremely hectically in recent years, which is only partly explained by the huge speculative positions that have developed in one of the world’s most important and liquid commodities, and the fact that both global demand and supply can move relatively fast by a few million barrels. re-prizes the oil. While in January last year, before the global coronavirus epidemic, the price of Brent crude oil was still above $ 70, less than 4 months later quotes were close to $ 15 (and there was a very extreme situation that another type of oil, the U.S. for the first time in history at the May 2020 futures benchmark WTI, the oil price fell by more than 80 percent in a few months. However, the global fiscal and especially monetary stimulus has also had an impact on this market and, in parallel with the relatively rapid recovery in global oil demand, oil prices have rallied sharply, supported by speculative buying positions, and again a year after the pandemic. the Brent exchange rate was at pre-Covid levels,
and oil prices have risen to a three-year high in recent days.
For the first time in three years, the Brent exchange rate is above $ 80 again, and not much is needed to bring the exchange rate to a level not seen since October 2014.
What else is the article about?
- At a three-year high, the price of Brent-type oil is close to a seven-year record.
- The demand-supply balance has been upset, the imbalance may persist for months.
- There is an astonishing amount of speculation in the oil and gas market.
- Further, moderate price increases are expected in the oil market.
- Domestic fuel prices depend not only on the exchange rate of oil, but also on the dollar.