OPEC Pickle

The past three years have produced an extremely volatile crude oil market, as prices have waivered up and down with uncertainties of the strength of the global economy and security of global supplies. As current conflicts in oil producing nations intensify, strong demand growth in emerging economies has caused concern over a global shortage of petroleum supplies. Brent oil, the benchmark used to price much of the world’s internationally traded crude oil, climbed above $100 per barrel in the beginning of February this year. Although wavering in price, Brent has stubbornly held above this important psychological threshold for most of 2011 to date. The Organization of Petroleum Exporting Countries (OPEC) has time and time again attempted to assuage markets, and stabilize prices, asserting plenty of spare capacity. However, it is hard to ignore the seemingly alarmist cries warning of tighter times ahead. Download here