2018 Brent Crude Oil Volatility: June Outlook
Quantitative Analyst Vito Turitto: Dated Brent crude oil prices rose in May, pushed by a healthy demand in the Far East, particularly from China and South Korea, despite US barrels — favored by a wide Brent/WTI spread — continuing to arrive into Europe. However, in June, the demand/supply dynamics will likely not take center stage as all eyes will be on the upcoming OPEC meeting to be held June 22. The Brent market may experience a high level of volatility in the last trading days of June and a good hedging strategy will be essential to avoid unwelcome surprises.
- US crude export hits record high
- OPEC could consider increasing oil production
- Oil volatility to increase after June 22