{"id":586220,"date":"2023-05-08T00:00:00","date_gmt":"2023-05-08T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2023\/05\/08\/economic-concerns-raise-volatility-in-the-oil-markets\/"},"modified":"2023-05-08T00:00:00","modified_gmt":"2023-05-08T00:00:00","slug":"economic-concerns-raise-volatility-in-the-oil-markets","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2023\/05\/08\/economic-concerns-raise-volatility-in-the-oil-markets\/","title":{"rendered":"Economic concerns raise volatility in the oil markets"},"content":{"rendered":"

Volatility in oil prices could create more \u2026 volatility in oil prices: <\/span>Speculators have <\/span>dumped <\/span>their oil holdings as prices crash, leaving the market in desperate need for liquidity, <\/span>Bloomberg<\/a><\/span> reports. Investors are looking for the door after a week of declines that at one point pushed WTI crude prices as low as USD 63.64 a barrel, a low not seen since late 2021. Money managers have ditched net-bullish positions by 19%, leaving the market to \u201calgorithm or momentum-based traders\u201d and potentially spurring more volatility. <\/span><\/p>\n

Contagion in the cards? <\/span>\u201cWe\u2019re not there yet, but if oil drops below USD 63, it will cascade in other markets \u2014 even stocks,\u201d one analyst said, adding that \u201coil lures speculators when prices move higher. They need to see a more rational market.\u201d Bulls will be looking for a slowdown in Russian output or a pickup in Chinese demand before they return, according to the business news outlet. <\/span><\/p>\n

European gas prices have also dropped: <\/span>The European gas benchmark <\/span>fell to EUR <\/span>35.20\/MWh on Friday \u2014 its lowest since July 2021 \u2014 following a mild winter and as the continent succeeds in finding alternative sources of gas and bringing online more renewable power, the <\/span>Financial Times<\/a><\/span> reports. That\u2019s compared to the<\/span><\/a><\/span>all-time high<\/a><\/span>of EUR 350\/MWh that European gas hit last summer as Russia slashed its exports of natural gas amid the war in Ukraine. <\/span><\/p>\n

Good news for inflation? <\/span>The gas price drop has some expecting that the high inflation seen in most major markets over the past year could now start to cool, leading the European Central Bank to raise interest rates by a smaller 25 bps last week after a spate of larger rate hikes aimed at curbing price growth.<\/span><\/p>\n

Also worth noting this morning:<\/span><\/p>\n