Oil Prices Continue To Be Volatile
The Financial Times has written this week on the topic of oil prices rising to their highest level – at nearly $70 per barrel – since Opec’s decision to let them drop in November. Oil prices have now surged by around 50 per cent since January.
Few are expecting the price rise to continue and some are even predicting another drop before the end of 2015. However, the Financial Times cautioned that the price surge has been fuelled by “stronger demand, near-record hedge fund buying and a slide in the US dollar”, and that its potential impacts should not be under-estimated. Current oil prices are currently comparable to their 2006-2009 levels.
Whether the price of oil rises, goes down or remains the same – this surge is a reminder of the volatility of oil as a resource and its prices. That might be a concern considering it is oil that “fuels the global economy”.
Lead image licensed under CC – credit Flickr user: Sergio Russio