Oil Prices Continued a Rollercoaster Ride Last Week
Oil Prices Continued a Rollercoaster Ride Last Week

Oil prices continued their rollercoaster ride in the past week.

Last week, the global oil markets saw prices go up and down as traders tracked the investors growing appetite for taking risk, as dollar fluctuated and the market was struck with supply glut concerns.

On Monday last week, crude futures started on the back foot with a slide as US drilling activity increased. Dollar strengthened and gained from better-than expected US jobs report in the past week.

Just next day, on Tuesday, oil prices saw a rebound as OPEC forecasted a drop in global supply glut which in recent years has affected the market.

Expectations widened over speculation that the globally central banks would add stimulus measures after Britons voted to exit the European Union.

In its July report, the fourteen member group, the Organisation of the Petroleum Exporting Countries (OPEC) said it expects global over supply to ease later this year and also in the year ahead as production by non-OPEC producers drop.

OPEC provides about one third of the world's crude oil and in recent years has kept the supply continued even with falling prices and a supply glut.