(Kitco News) - Some analysts are warning that even after the worst price decline in 30 years, the crisis in oil prices can get a lot worse.
In an interview with Kitco News, Harry Tchilinguirian, head of commodity research and senior oil analyst at BNP Paribas, said that invetors should expect to see more volatility in oil prices in the next two weeks as that is when the OPEC’s cuts agreement officially ends.
Tchilinguirian said that markets are getting just a taste of what could be expected if a new agreement isn’t reached by the end of the month. Crude oil prices dropped more than 30% Sunday evening after quota talks between OPEC nations and Russia broke down.
In response to the breakdown in talks, Saudi Arabia slashed its official selling price and announced plans to raise crude production significantly. Tchilinguirian said that Saudia Arabia appears to be focused on market share over price stability.