Crude price volatility to stay

Another possible rate increase from Federal Reserve by mid-year may boost dollar, impact oil prices

Over the past few months, analysts and money managers had been bullish on crude oil prices. Producers were feeling far more profitable, compared to a year earlier, and some felt $60 a barrel was achievable in the lead up to Organization of the Petroleum Exporting Countries’ (Opec’s) May meeting in Vienna. 

But, oil has certainly taken a backward step since the ‘CERAWeek’ in early March. The price has dropped 12 per cent since the February high and nine per cent of that decline came in the week ended March 10. This rout comes after the realisation that crude stocks are