Financial Times FT.com

Insight: Opec’s policies will ensure oil price volatility

By Ed Morse, chief energy economist at Lehman Brothers

Published: January 30 2008 18:21 | Last updated: January 30 2008 18:21

Oil prices in 2008 could fluctuate widely as in 2007 when Brent traded between $50 and $100.

Opec officials meeting this week in Vienna blame speculators for most of this volatility. But growing price volatility stems directly from Opec’s increased importance in balancing markets. Speculative flows accentuate price movements, but the producer group is their prime cause.

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