Quarterly Oil Market Outlook Oct'19: Trade war and tensions in the Middle East spur oil price volatility
We remain bullish on the average oil price in the coming period as the situation in the Middle East remains highly fragile.
There are plenty of events and news in the market which spur oil price volatility at the moment.
Negotiations regarding easing of the trade war between the U.S. and China are ongoing, but have so far failed to show tangible results other than recent cancellation of increased tariffs in mid-October.
In September, Saudi Arabia was subject to huge oil production disruptions as drones attacked oil facilities and set offline more than half the country's oil production facilities. The event sent oil prices soaring, but the Kingdom quickly restored output, sending prices back to pre-attack levels. However, the situation remains fragile as a large part of the world's oil supply originates from the Middle East.
Oil price development including different scenarios