Oil prices on a roller-coaster over the summer

Looking back at how oil has been priced over the summer, one can indeed accurately describe it by using one of iconic fair attractions

The start of July was a small peak, WTI crude has risen 7 dollars per barrel from the low point of 52, 5 in mid-June. First half of July was then relatively calm for a fluctuating commodity such as oil, with prices mostly staying in 3 dollar radius. In the second half of the month, markets got more nervous and oil started to trend down.

In August, things were considerably less calm, the month started with a deep dive up to 51 dollars per barrel due to heightened fears of trade war between US and China. Things calmed down a bit after that and oil prices rose somewhat, but not to the levels seen in July. Since then prices have been bouncing up and down based primarily on the latest developments between those two superpowers. Two other influences most also be mentioned, prices were depressed by the threat of conflict in the Persian Gulf. On the other hand, efforts by OPEC have acted as a counter to this.

As for the future, as long as there is a plausible threat of a trade war, markets will remain jittery.


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