The crude oil markets had been the biggest source of worry for global markets for the longest time. Ever since last year, the crude oil market was the only commodities market to not pick up in the sector. There have been a lot of problems in the sector of late as well. The erratic surge and sudden fall have left market experts extremely skeptical about the entire situation. The oil market was further worsened due to the advent of shale gas which made the traditional crude oil market a major problem. It also rose tensions amongst the global trading sector and troubled foreign affairs and cross-boundary diplomacy.
The bad times
Following the lifting of sanctions from Iran, the oil market seems to have added an additional glut of oil in the market. Until the arrival of Iran on the world oil trading stage, there was a substantial amount of control over the market. However, ever since the trading began it has impeded the process even more so. The increase in oil supply in the global market pushed up prices sky high and made for a very weak oil market. Last month however, the oil commodities market began to make a comeback in the world trading markets.
Ever since last month, oil markets have jumped by 50 percent. With the big jump in global efforts, the markets seem cautious, but optimistic. However, it is still something to be quite wary about as there was a problem with the markets a few weeks ago. A couple of weeks ago, even thought there was a spike in markets, it was followed by a substantial downfall which left investors scurrying to withdraw investments. Many people still think it is an ominous situation. The markets have recovered now enough to not let a financial catastrophe re-occur.
Once bitten, twice shy
Many financial experts are still wary about the market as it still seems like a lose pendulum. The oil market boat swings either way with extremely erratic dips and surges. The head of the OPEC also went on record to state that the oil markets return is a highly bullish market today after a long bearish slumber. Even though prices for oil climbed, financial analysts state that it would still take a while for the investors to go all in for ensuring investments. Oil prices touched a four month high of over 41 dollars to the barrel.