At the New York Mercantile Exchange, the crude oil options pit. The extreme volatility has perplexed those who follow oil prices. Daniel Acker/Bloomberg NewsFrom New York Times:
The extreme volatility that has gripped oil markets for the last 18 months has shown no signs of slowing down, with oil prices more than doubling since the beginning of the year despite an exceptionally weak economy.
The instability of oil and gas prices is puzzling government officials and policy analysts, who fear it could jeopardize a global recovery. It is also hobbling businesses and consumers, who are already facing the effects of a stinging recession, as they try in vain to guess where prices will be a year from now — or even next month.
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My Comment: Energy has always been one of the crucial components in the world of geopolitics. Unfortunately, its price fluctuations have always brought about instability and in the end .... war and conflict.
Will this continue and/or get worse .... alas .... I will have to say yes.
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