Volatile behaviour

摘要

The $5/bl sell-of on 19 July followed a decision by Opec+ ministers to increase production by 400,000 b/d a month until its current cuts are gone. The trigger was not just, or even mainly, a production-side reaction. A broader sell-of on other fnancial markets may have supplied the trigger for oil, and the market had largely regained the ground several sessions later. But a major root cause in the jumpiness of markets lies in concerns that the current rapid economic recovery may be slowed by the spread of the more contagious Covid delta variant. Covid-19 brings such volatility because its path continues to be inherently unpredictable.