Crude Future: Markets & Prices

Having a look at reviewing record of Crude Oil Price, you do not have to waste your time looking to far back into history in order to find the greatest nominal price move in history. There was a change in the Prices of Crude Oil; The Prices of Crude Oil rally actually stemmed from the last time Crude Future traded under $10/barrel. For over the next nine years, the Price of Oil fluctuated over 1,400% before topping out at $145/barrel in 2008. During the 18 months from January 2007 to July of 2008, the most impressive stage or phase of this rally took place. “The Crude Oil Market hit an intraday high of $147.27 and a closing high of $145.29 on July 11 and July 3 respectively; these broke and currently hold record intraday and closing figures. The rally from approximately $50/barrel in Jan. 2007 to the closing highs in July equated to 190% rally. One of the fundamentals that influenced the timing of this rally was a 1.7 million barrel per day two phase production cut by OPEC. The cuts were in Nov. 2006 (1.2 mb/day cut) and Feb. 2007 (500 tb/day cut). In looking back at other noteworthy price runs, OPEC member nations seem to have a driving influence on the volatility.”

The Crude Oil Market rally that climaxed in 2008 was an amazing occurrence that will be talked about for some time to come, but the move is relative in comparison to other historic rallies on a percentage basis. These other pricing events went down within the 1970s and the first half of the 1980s. In fact, prior to 1973, the Price of Crude Oil pretty much was below $5/barrel except during a rally in the 1860s. In October of 1973, OPEC implemented and put an oil embargo on the U.S. and other European nations who helped Israeli with supply and military support during the Yom Kippur Arab-Israeli conflict. These supplies were important and necessary for Israel to hold off the Egyptian and Syrian offensives. In March of 1974, the embargo was repealed, but not until Prices of Oil had gone through the greatest percentage move to this date. In that 5 month period, Oil Prices quadrupled from $3/barrel to $12/barrel.