As an avid watcher of the oil and gas market, I thought that this new week will commence with a surge in the price of crude oil amid the speculations of new attacks in the Niger Delta by MEND (Movement for the Emancipation of Niger Delta), the rearing news that Israel might attack Iran, the blazing brouhaha in Middle East, riots and mayhem in Egypt and increase in demand for gas in Europe as a result of intense cold which were forecasted that might affect supply and trigger price of crude.

It is surprising to see the price of a barrel of crude oil drop close to $93 dollars and the reason for such a nose dive by some analyst is because the problem in Greece is far from being fixed.  It narrows the fact that the price of crude oil is more controlled by political and economic activities that take place in developed consuming nations, more that actions in producing nations as it may relate to the economics of supply and demand.  And also the conclusion that the price of crude oil remains a tool for market speculators and stock analyst to tweak based on their emotions.

I am pressed to ask: What really drives the price of crude oil in today’s volatile economy?

Share Link: