The oil market is likely to become progressively more unpredictable over the coming months, analysts have told CNBC, in the latest sign dynamics shaping crude futures have dramatically shifted since the crude rally began.
International benchmark Brent crude has tumbled nearly 9 percent from last week’s high of more than $79 a barrel. It’s most recent dip comes amid emerging evidence of higher crude production from OPECkingpin Saudi Arabia and other members of the Middle East-dominated cartel — as well as Russia and the U.S.
“Political and economic events are shaping the oil market in a way that they have not shaped for quite some time,” Tamas Varga, senior analyst at PVM Oil Associates, said in a research note published Thursday.
“The amount of uncertainties surrounding the global supply (and) demand balance is growing almost by the day,” he added.
Saudi Arabia reportedly ratcheted up crude shipments to global markets by almost 400,000 to 7.6 million barrels per day (bpd) last month.