Oil prices expected to face volatility in near term

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SINGAPORE (July 10): Phillip Securities Research says oil prices are expected to fluctuate widely in the near term as the oil market embraces higher volatility.

“On the one hand, the market will continue to price in geopolitical risks such as trade war tensions and output disputes. On the other hand, the proceeding of the Fed rate hike cycle and shrinkage of balance sheets in major central banks could slow the recovery of the global economy,” says analyst Chen Guangzhi in a Monday report.

Riding on the tailwind of shrinking inventories, WTI and Brent crude oil prices have rallied in the recent three consecutive quarters. In June, Brent hit three-year highs of US$80/bbl... (Click here to read the full story)