The price of oil finished lower on Tuesday, with US prices experiencing a decline for the first time in four sessions. Analysts speculate that the oil market is becoming increasingly volatile, with the possibility of prices reaching $100 per barrel in the not-too-distant future. However, it remains uncertain whether this price level can be sustained for an entire month.
Tom Kloza, global head of energy analysis at the Oil Price Information Service, compared oil trading to the game of “Chutes & Ladders,” highlighting the unpredictable nature of the market. He suggests that when bullish sentiment reaches extremes, a market turnaround is often imminent.
In line with these observations, October West Texas Intermediate crude fell by 0.3% to settle at $91.20 per barrel on the New York Mercantile Exchange. This comes after Monday’s closing at the highest price point of the year.
There is no doubt that the oil market holds a significant impact on global economies, making it crucial for investors, analysts, and consumers to closely monitor its fluctuations. Industry experts such as Tom Kloza provide valuable insights into the complex factors influencing oil prices.
Definitions:
– West Texas Intermediate (WTI): A benchmark used in oil pricing, specifically for oil produced in the United States.
– New York Mercantile Exchange (NYMEX): A commodity futures exchange where trading of various commodities, including oil, takes place.
Sources:
– Oil Price Information Service: A Dow Jones company that provides analysis and information on oil prices.