Coping with Oil Price Volatility
Article from: OGEL 5 (2012), in Economic and Commercial Context for Oil, Gas and Energy Law
Introduction
This year's oil price bubble, which saw Brent crude rise to nearly $130/bl in mid-March followed by a steady price decline, reminds us of the dramatic price swings of 2008.
In that year, oil prices increased rapidly, consumers complained, OPEC expanded production in an unsuccessful effort to stem the price rise, and commercial inventories of crude oil and petroleum products accumulated. Although there was no oil shortage, crude oil prices soared to over $145/bl in early July before plummeting to less than $35/bl by year's end.