Three big uncertainties cloud the oil market
OPEC’s calculations, America’s shale quandary and Chinese lockdowns make a volatile mix
ALMOST A MONTH after Russia’s invasion of Ukraine sent the oil price surging, turbulence in one of the world’s most crucial commodities markets shows little sign of coming to an end. The price of a barrel of Brent crude oil surged to $121 on March 23rd, as storm damage halted exports from a Russian pipeline. Over the past fortnight it has whipsawed from a peak of $128 to as low as $98. The pandemic-related chaos of 2020 aside, the OVX index of oil-market volatility has rarely been higher in the past decade than it has been this month.
This article appeared in the Finance & economics section of the print edition under the headline “A volatile mix”
Finance & economics March 26th 2022
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