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In 2008, the world witnessed an unprecedented international crude oil market volatility?? Oil prices continued to soar during the first half and in the years approaching 150 U.S. dollars a barrel in the history of "astronomical", but in the end of the second half but quickly dropped to around 30 dollars a barrel lower point. While many people think that as a roller coaster of volatility is difficult to reproduce within a short time, international oil prices in the turbulent first half of 2009 re

2008 map of the international oil prices

In the first half: turbulent 2009 the beginning of the end of last year, oil prices continue to decline, has remained at low levels to 2,3 when the month is still around 35 dollars a barrel, but then began to surge the way, in May has risen nearly 30%, the highest in 10 years the biggest monthly rise. Until early in June rose to 73.23 U.S. dollars a barrel to 8-month high after the oil shocks of adjustment gradually enter. The entire second quarter, international oil prices rose more than 40%, the highest third quarter of 1990, Iraq invaded Kuwait the biggest quarterly increase since.

Why the international oil prices soaring second quarter, industry analysts generally believe that the current supply and demand with the crude oil market has nothing to do. While the international Energy Agencies in June will be the world's daily oil demand in 2009 is expected to slightly raise the 12 million barrels, but still expects oil demand declined by 2.9% over last year, equivalent to 250 million barrels of daily demand declined.

From the supply perspective, Oil OPEC (OPEC) in September last year the organization has total crude oil production quota cut on 420 million barrels, which global Oil Adequate supply of spare capacity. At the same time, U.S. commercial crude oil inventories declined in several consecutive weeks, but due to the reduction of imports, rather than increased consumption, and the total inventory is still the highest level in 10 years.

Investors estimate the overall macroeconomic situation, changing from extreme pessimism to cautious optimism is the dominant force in oil prices. Long-term energy market price tracking Wall Street Strategies analyst Connie. Turner said in an interview: "rising oil prices was mainly due to increased market optimism, investors think that perhaps we have already bid farewell to the U.S. economic recession was the worst."

Another push crude oil and other commodity futures price factor is the recent U.S. dollar lower against other major currencies. As international oil transactions in dollars, the dollar's fluctuations directly affect the oil price. Depreciation of the dollar when oil prices become relatively "cheap" and would lead to an influx of funds, pushing up oil prices.

Furthermore, as the Government should Financial The cost of the crisis, the U.S. Federal Reserve increased the money supply, allowing the market to see the dollar's long-term trend. As a tool to hedge the risk of depreciation of the dollar, dollar-denominated commodities futures market, investors become an option.

Full capacity of oil to start in late June did not hesitate before, from both supply and demand, exchange rate changes, economic trends or geopolitical news can cause volatility in oil prices, the market obviously looking for direction.

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I am an expert from China Manufacturers, usually analyzes all kind of industries situation, such as hitachi tv stand , daewoo 42 plasma.