The price of the Opec Reference Basket (ORB) of crude oil declined steeply in trading from almost $120 per barrel to $104.4 per barrel on May 6.
Brent and WTI crudes lost almost $10 a barrel in one day on May 5. The oil market has seen nothing like this for a long time.
It is true that oil prices are affected by geopolitical risks such as the events in Libya and other oil producing countries, but these risks have not subsided. In any case the market has adjusted to the loss of Libyan production.
No comments:
Post a Comment