The stock market day
The roller coaster ride of Brent oil prices
03/07/2022, 10:48 am
The turbulence on the oil markets is entering a new round: because of the invasion of Ukraine, calls for a ban on Russian energy supplies are getting louder. So far, oil and gas exports have been exempt from the direct sanctions of Western countries against Russia. However, should it come to that, experts fear an energy crisis in Europe. Because other states could not absorb the losses. Below is a selection of price milestones and price swings:
Summer 1988
The futures contract on Brent, a crude oil mix from several North Sea fields, is launched. A barrel (159 liters) costs about $15.
July to October 1990
Iraq’s invasion of neighboring oil-rich Kuwait sparks a multi-month rally. The price rose by more than 150 percent to a record high of $ 40.95 within a few weeks due to speculation about delivery failures. On August 8, 1990 alone, the increase was around 14 percent.
January 17, 1991
The start of the US-led military operation “Desert Storm” against Iraqi troops is fueling hopes of a speedy return of Kuwaiti oil to the world market. Brent recorded the largest daily loss in its history with a minus of almost 35 percent. The day after, however, it goes up again by 23 percent.
July 11, 2008
An economic boom and loose monetary policy from the US Federal Reserve push the Brent price to a record high of $147.50.
early September 2008
The unfolding financial crisis triggers the longest slide in Brent history. The price has been declining for 14 straight days, losing nearly 20 percent overall over the period.
November 20, 2008
Brent is below $50 for the first time since 2005. A few weeks later, the provisional low of 36.20 dollars was reached. Compared to the record high, this is a drop of more than 75 percent.
2009 to 2012
Fueled by a flood of cheap central bank money, the global economy is recovering and with it the oil price. Brent hits a high of $128.40 in March 2012 before the European debt crisis triggers a new slide. It throws the oil grade back as low as $88.49.
July 14, 2015
After years of negotiations, there is an agreement in the nuclear dispute with Iran. The Islamic Republic should limit its nuclear activities. In return, the West lifts its sanctions and allows Iranian oil to return to the world market. In the months that followed, the price of Brent fell by half to around $50. The descent is exacerbated by a record increase in production volumes by the OPEC countries, which are unable to agree on limiting quotas.
January 20, 2016
The International Energy Agency (IEA) warns oil markets could drown in oversupply. The price for Brent only comes to a standstill just above the 27 dollar mark.
November 30, 2016
For the first time since 2008, OPEC has decided to cut production and is bringing other exporters such as Russia on board. On the same day, North Sea oil rose in price by almost ten percent to well over 50 dollars. At the end of the year, a barrel cost more than $53, 45 percent more than at the end of 2015. In the years that followed, OPEC+ increased its output several times.
08 May 2018
US President Donald Trump has canceled the nuclear deal with Iran and imposed new sanctions on the country. As a result, oil supplies with a volume of several hundred thousand barrels per day could be withdrawn from the world market. Due to the ongoing funding brake by OPEC and its allies, supply no longer meets demand. In the months that followed, the Brent price rose by around 14 percent to just under $87.
March and April 2020
The outbreak of the coronavirus pandemic heralds the most turbulent phase in the history of the North Sea oil variety. Seven of the ten biggest falls and eight of the ten biggest jumps occur during this period. The crisis is exacerbated by a price war between the two major producing countries, Saudi Arabia and Russia, which are turning on the oil tap to the max.
April 20, 2020
Global lockdowns are causing oil demand to collapse. The price of US crude oil (WTI) plunges 320 percent to a record low of minus $40.32 a barrel. Because storage capacities are rare due to the lack of demand, investors first pay money when someone takes the “black gold” from them. Brent cannot escape this pull, although its futures – unlike WTI – are not obliged to physically purchase the corresponding quantity of crude oil at the end of the term. Brent hits a 21-year low at $15.98 on April 22.
May 2020 to October 2021
Thanks to a recovery in the global economy, the price of oil is rising steadily. In December, Brent recouped its losses since March’s coronavirus crash. Although OPEC+ is continuously increasing production quotas, supply is not keeping pace with demand. On October 25, North Sea Oil hits a three-year high at $86.70.
Late November to early December 2021
The appearance of the omicron variant of the corona virus caused Brent to suffer a price slide of around 20 percent within a few days. By the beginning of 2022, the losses will have been recovered.
February 24, 2022
The start of the Russian invasion of Ukraine triggers a global stock market tremor. Fears of supply disruptions are driving the Brent back above the $100 mark for the first time since September 2014.
March 07, 2022
The discussion about a ban on Russian energy supplies triggers renewed panic buying. Brent price is up as much as 17.8 percent to a 13-1/2-year high of $139.13. This is the biggest price jump in two years. The record high of July 2008 is less than ten dollars short.