Related Articles
Leaders
Forward article link
Share PDF with colleagues

Volatile market conditions

Saudi Arabia wants Opec to keep cutting, despite the steady tightening of the market. It's a risky strategy

Get ready for the oil-market rollercoaster of 2018. Having paused for breath near $70 a barrel, the oil price now seeks direction—but the arrows point different ways. Eighty-buck Brent now looks distinctly plausible. But so, if less compellingly, does $40. The market is at a crux. Every bullish cylinder is now firing at once. The global economy is roaring ahead. Oil demand is surging. Geopolitical tensions are building. Crude and products inventories are shrinking. Speculators are hoovering up paper barrels. Opec is jawboning. Even the weather in big consumer countries has been cooler than normal. Lingering in the background are two potentially bearish forces: a big supply reaction, especi

Also in this section
Trade war spills over
7 August 2018
US-China tensions likely to prompt shift in crude, LNG flows
Strategy v market dynamics
2 August 2018
Members must consider a host of complex issues as they wrestle with the problem of managing oil supply
Opec and IEA diverge on world’s capacity cushion
13 July 2018
As trade tensions and disruptions ripple through the market, Opec and the IEA disagree on the risks to supply