for Oil Price Volatility
Stay on top of the latest developments in oil markets, geopolitical risk, and alternative fuel vehicles with the SAFE policy team's Chart of the Week.
The current stability is relatively rare for the oil market, which is prone to rampant volatility for numerous reasons. When the market eventually breaks out, it could do so aggressively.
As the group doubles down on its production cut, questions linger about exit strategy, capability, and size.
More and more market watchers are making the case that OPEC should just leave well enough alone and let the free market set the price. While trying to influence sentiment and fundamentals, on nearly a daily basis, OPEC has already destabilized the market and guarantees more uncertainty ahead.
Despite continued rapid growth in U.S. shale, the global oil market could see price spikes and increased volatility at the beginning of next decade.
In just the past two weeks since OPEC announced it plans to cut output, the cartel has significantly altered market sentiment and shifted the oil market outlook for next year.
An Evolved Oil Market and New Vehicle Technologies Have Major Implications for Light Duty Fuel Economy
If it can be verified that the use of autonomous vehicles will improve overall fuel economy and reduce GHG emissions, the agencies should explore ways to maximize the benefits as soon as feasible.
A number of supportive elements should keep a floor under prices, while the market will be capped by the ongoing oversupply. For the time being, oil markets are set to remain volatile and range-bound with many competing factors pushing prices in both directions.
Although the oilfield service giants will undoubtedly survive, there’s a lot of uncertainty going forward, prompting them to focus on cost per barrel optimization and improving efficiency
After a number of years of relative price stability, the oil market is again dealing with wilder fluctuations on a more regular basis, as technical traders such as the quants play a key role.