Oil is coming into a volatile period

The price for a barrel of oil has plummeted in the last six weeks, such a price drop has been suffered since 2015. At the moment, oil is quoted at $ 65 per barrel from $ 74 in early July. According to Tom Kloza, co-founder of the Oil Price Information Service, the coming weeks will remain volatile, with the price going all the way, to 50 or 100 dollars.
The upward momentum on the oil market has come to an abrupt end and has been transformed into a volatile period. Tom Kloza claims that the movements on the oil market will be very unpredictable in the coming weeks, the price may drop sharply to $ 50 as rising to $ 100 depending on what is still waiting for us at geopolitical level.

Volatility

Over the last 17 months, the graph shows an extremely moving picture. Such fluctuations are not uncommon on the commodity markets, while the price even fell by 77 percent during the financial crisis. During the most recent sales wave, the decline was somewhat less severe, namely 56 percent.
At the moment we are also in a risky period given the political, both at home and abroad, struggles. Kloza expects that the prices will fall in November towards the $ 50. Mainly due to the conflict between the United States of America and Iran.
But first the oil price could start to rise in the coming weeks before it loses ground, which is probably due to the reduced decline of American oil barrels. The counter is about 21 million barrels, which is significantly less than 60 million barely a year ago.

Sources: CNBC