Oil prices have been bouncing up then down in quite erratic fashion on the world’s commodities market.
The Opec club agreed to extend supply cuts until next March which prompted price rises, which then eased off a bit due to a perceived slowdown in the global economy which may ease demand on oil.
Then a few different skirmishes in the Straits of Hormuz, culminating in the seizure of a Birtsh tanker by Iran sent prices spiking again. Volatility - in the oil market and in the Middle East situation - is the watchword.
“Opec sticking to their production curbs.. Will continue to support oil prices as it remains the primary mechanism for the delicate task of keeping the market equilibrium intact,” according to one anlayst. A few more incidents in the Gulf region could blow that equilibrium clean away.
