The Wall Street Journal reported yesterday on the decrease in oil prices after a year long rally that culminated in its best quarter since 1990. This is interesting given what happened last year after oil reached a remarkable high of $145.29 a barrel only to fall 77% in seven months.
The high price of oil this year is unexpected given the low demand. As Vitol CEO Ian Taylor noted last month, “The recent rise in oil prices [does] not appear to sit comfortably with the currently available supply and demand data."
The downward pressure on oil is so great it could trade for as little as $20 a barrel by the end of the year, according to the Chicago Tribune. This is due to the lessened demand at a time when there is a big surplus, Philip Verleger Jr., an expert on energy markets at the University Calgary, told the Tribune.
It will definitely be interesting to see what happens the rest of the summer.
About Me
- Joe Mills
- This blog is for oil trading consultants like myself, who need to follow the movements in the international physical oil commodities global markets. I monitor news about companies like Trafigura, Glencore, Vitol, Total, Shell, BP, and all of their competitors. Would love to have others who follow this industry from the sidelines add their comments whenever they have them. thanks-- Joe
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