Have you wondered why crude oil has been so volatile lately?
I understand that global market risk appetite has been in flux as well - the eurozone is on the brink, China is fighting battles on all economic fronts, and the US is mired in a political debate that is essentially a giant waste of time. These items have no doubt had some influence on crude oil’s volatility.
I also understand that there have been some disconnects between crude oil supplies in North America and those supplies around the world. There have even been disconnects between supplies in the Eastern and Central regions of the United States.
Widely known is the build-up of crude in Cushing, Oklahoma … as supplies piped in from Canada and US shale projects continue to grow. And in response to the supply disruption in Libya, other West African production, typically imported by the US, has been redirected to Europe. And don’t forget that the IEA coordination a release of emergency reserves.
Not so widely know, though, are these other developments:
No new recommendations or adjustments.