The bulls and bears have been battling it out with some violent intra-day price reversals as of late and today is no exception.
Among the many geopolitical issues going on in the world effecting the oil market, there have been reports this week that President Trump is considering tapping into the Strategic Petroleum Reserve (SPR) in an effort to lower gasoline prices. According to Bloomberg, “options are under consideration ranging from a 5 million barrel test sale to a more sizeable release of 30 million barrels and a third option of a larger release that would be coordinated with other nations.” Utilizing any of these options would create a shift in global crude oil prices.
Causes of oil price fluctuations come in many forms, but the past 20 day 30% swing can fall squarely on the shoulders of uncertainty. With uncertainty comes volatility.
After five months of escalating tensions between the U.S. and China, oil is poised for its biggest weekly loss as macro fundamentals of the said trade wars and increases in oil production from Russia, Saudi Arabia and Libya.
Nine months ago construction began for Shell’s $6 billion ethane cracker plant in Monaca (Beaver County), PA. The project development includes building bridges, relocating a state highway, improving the existing interchanges, re-positioning the rail line, and prepping foundations for the new complex.