Home Blogs Chemicals and the Economy Crude oil trading hits new record

Crude oil trading hits new record

Economic growth, Oil markets
By Paul Hodges on 13-Jan-2009
Oil trading 08.jpg

The ever-interesting PetroMatrix report notes that 2008 saw record volumes of crude oil trading. As their chart shows (above), the volume of trading on futures markets in 1995 was equal to daily oil production volumes. By 2000, the ratio had reached 2 : 1, and by 2005 it was 3 : 1. The ratio then jumped to 7 : 1 in 2007, and was nearly 8 : 1 last year.

Olivier Jacob rightly notes that “this jump in volume has also brought a jump in volatility, and is an input that needs to be taken in consideration when making a price forecast”.