Volatility In International Oil Prices Has Increased

International oil price fluctuates recently, 8 days rise significantly. Light crude for November delivery ended the day up $1.24, or 3.10%, at $41.19 a barrel on the New York Mercantile Exchange. Brent crude for December delivery in London rose $1.35, or 3.22%, to settle at $43.34 a barrel.

Light crude for November delivery fell 59 cents, or 1.43%, to settle at $40.60 a barrel on the New York Mercantile Exchange. Brent crude for December delivery in London fell 49 cents, or 1.13%, to settle at $42.85 a barrel.

Analysts say hurricane Delta has reduced U.S. offshore oil production in the Gulf of Mexico, but that factor will only support international oil prices in the short term. Earlier, the support for oil prices quickly dissipated after Hurricanes Laura and Sally made landfall along the U.S. Gulf Coast in August and September, respectively, leading to significant corrections.

Bjornal Tunhaigen, senior vice President and head of oil markets at Restal Energy, said he expects a correction soon after the hurricanes and other factors disappear. Oil prices remain above $40 a barrel on shaky ground.

Going forward, investors will focus on the impact of coVID-19 developments, the recovery of Libyan crude oil, whether major producers will adjust their output reduction plans and the progress of negotiations on a new round of fiscal stimulus measures in the United States. International oil prices are expected to remain volatile due to multiple factors.

Austria's JBC Energy said global oil supply and demand were likely to be close to equilibrium in November, which would not be enough to make a significant reduction in global inventories.

According to the Wall Street Journal, Saudi Arabia and Russia may reconsider production cuts due to the outbreak and the resumption of Libyan crude oil exports.

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