Is The Oil Market Really Broken?

Is The Oil Market Really Broken?

Is The Oil Market Really Broken?

“The oil futures market is completely broken. Moving down $10 in a day for no apparent reason,” tweeted hedge fund celebrity Pierre Andurand this week. Indeed, volatility these days is not what it was just a couple of years ago.  Yet it may be a little excessive to claim the market has broken in an echo of the EU’s claims that the gas market there no longer serves its purpose. The degree of oil price volatility has changed but the sources of this volatility have not. As always, it’s about fundamentals, the economy,…