Publications: Notes at the Margin

Brent, Liquidity, Oil Inventories, and Oil Prices (November 14, 2011)

 

The movement of petroleum product and crude oil prices over the next six to twelve months will be influenced more by MF Global, Greece, and Italy than the weather or decisions taken by the ministers of oil-exporting countries. However, oil-exporting nations will have a greater role in dampening oil price fluctuations in 2012 than at any time in recent memory because the limited control over prices possessed by financial institutions has been suspended. These two sentences summarize the consequences of recent economic developments for oil. This week's report focuses on the effect on oil inventories and prices of the continuing banking headaches in Europe and the potential regulatory responses to MF Global's failure.

 

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