The Crude Truth About the Oil Market
- May 18, 2017
By Peter G. Hall, Vice-President and Chief Economist, Export Development Canada
Global oil prices are on the move again. Market watchers would be quick to say that that's nothing new, given swings that can occur on a daily or weekly basis. But the recent $8 drop in West Texas Intermediate crude revived fears that a steeper drop could be in the works. Producers don't seem satisfied that the recent range will hold; no doubt they are jaded by the wide gyrations of the past three years - or longer. At the same time, a broader audience is looking at the effect of crude oil's latest movements on our dollar, and wondering where things are headed. Are prices settling into a range, or can we expect further shifting?
If the past two decades have taught this industry something, it's that price forecasts are very hard to get right. Careers have been established – and obliterated – by crude price calls
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