Oil price: volatility continues in the crude oil markets

 

Crude oil price fluctuations in February 2022

The fluctuations of the crude oil prices continue unabated, sandwiched between the volatility along the border between Russia and Ukraine and the optimism about the revival of the JCPOA, 2015 Iranian nuclear deal.

On military front, the Security Council Meeting of Russia, convened hurriedly by President Putin, did not imply an imminent invasion. Neither did it offer an olive branch to its beleaguered neighbour and foe, Ukraine.

President Putin reiterated his demand of a return guarantee from the NATO that Ukraine would not welcome to join the former, if the West is serious about de-escalation.

The palpable tension in the region is fuelling the uncertainties in many sectors, ranging from airlines to stock markets. The crude oil markets did not get a respite from it either.

The price of crude oil that fell slightly last week, picked up again and its direct impact on economy is blatantly obvious with global inflation skyrocketing.

The upward trend of the crude oil prices was slightly skewed last week when the negotiations involving signatories to the JCPOA, 2015 Iran nuclear deal, sounded optimism about a potential breakthrough.

If Iran manages to get past the current position of the negotiations there is a strong possibility of a deal being struck. Iran, meanwhile, has been increasing its production at a steady rate in the hope of a deal.

Some in the OPEC+, meanwhile, already fear that Iran will not strictly stick to quotas set out by the members of the cartel in order to compensate for the losses it suffered due to years of sanctions; that means it will pump more oil into the markets and the world in general will welcome such a move; that is something OPEC+ couldn’t do citing lack of investments.

In this context, the focus of the analysts is on the latest talks involving the signatories to the JCPOA And the West in Vienna, Austria.

Location: 9C6RP657+X5

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