In last time, not only currencies show high volatility in the market. Oil quotes showed that they can quickly fall and recover too. At the beginning of the month Brent went below $47 per barrel, and today is already trading above $52. WTI not for long but descended below $44, after what almost reached $50.
The main reasons for decline prices of black gold remain the growth of oil production and change inventories in the US storage. In States now begin the automotive season, the seasonal factor, which usually leads to an increase in demand for gasoline and other petroleum products, which may lead to a further decline inventories in the US storage. It returned the share of optimism to oil quotes.
But OPEC still remains the main support for oil quotes. Therefore, to return oil prices to higher values, the cartel preliminarily agreed with other exporting countries about prolongation of the agreement until March 2018.
But the risk of a new decline of oil quotes is quite high, because there is no shortage of supply in the oil market. Therefore, the slightest increase in oil production will put new pressure on quotes.