Showing posts from August 28, 2022

Oil price: wild oscillation continues between $80 and $100 a barrel

  The price of crude oil has been falling substantially since the markets opened on Thursday morning, as the wider economic worries weigh on the sentiments of a snap recovery. As of 13:15 GMT, WTI and Brent recorded $88.25 and $94.15 respectively. With the price of LNG, liquified natural gas, at $9.10, it provides a form of cushioning effect on the falling price of crude oil, as industrialists turns to oil when gas prices bite. That means, a serious crash is unlikely, despite the slowing global economy. The price of crude oil did not receive the usual boost when the EIA, the US Energy Information Administration, reported a modest draw on Wednesday. On Tuesday, by contrast, the API, American Petroleum Institute, reported a build in the US crude oil inventories. The fact of the matter is neither of the data made a lasting impact on the price of crude oil - beyond a few hours. With that, the data about the US crude inventories appears to be paling into insignificance in the presence of th

Oil Price: clashes in Libya put yet another damper on supply sentiment

source: The price of crude oil that fell steeply during the last three weeks is steadily picking up the upward momentum again, buoyed by the spectacle of a series of favorable conditions. The latest that worries the markets is the spectre of war in Libya again: the clashes between two governments left 23 dead and many wounded on Saturday, raising the fear of yet another full-blown war.  In direct proportion to the prevailing tension, the production of crude oil in Libya has been in steady decline as shown by the above figure; the latest fighting will potentially make it worse that in turn severely affects the global supply of crude oil at a crucial time for the global economy.  In addition, the prevailing security vacuum could be an ideal breeding ground for the militant outfits like Al-Qaeda and ISIS in the North African country that has the largest crude oil reserves in the entire region. The clashes in Libya comes in the wake of the concerns expressed by the oil

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