Sharp volatility continues to permeate through the oil markets. Crude prices were bolstered by a weakening US dollar and a conditional agreement between the world’s top two producers and exporters – OPEC’s Saudi Arabia and non-OPEC Russia – to freeze production levels. The global deal aims to slash expanding oversupply and in turn stimulate a price hike, after prices have slumped at their lowest for over a decade, with NYMEX WTI and ICE Brent contracts trading below US$35. Although the agreement is unprecedented in the sense it has been over 15 years since there was a global oil deal, there are doubts over its tangible impact.
About the authors
Vijay Mukherji is a manager in KPMG in the UK supporting clients with deals advisory strategy.
Thomas G. Ruck is a director in KPMG in the US supporting client with market and treasury risk.
Oliver Hsieh is an associatedDirector in KPMG in Singapore supporting clients with commodity price risk management.