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  • In October, oil prices rallied to four-year highs,

  • and traders were even asking if we could see

  • a return to a $100 barrel oil.

  • But prices have since tumbled, raising

  • fears of a new downturn, like the big crash in 2014.

  • So what explains the volatility?

  • Well, investors and traders quickly realised there would be

  • far more oil on the market than expected.

  • US production has been swelling rapidly,

  • and more Iranian oil could become available

  • despite sanctions.

  • There are also mounting concerns about weaker

  • global economic growth.

  • This mobilised Opec and Russia to agree on a new round of oil

  • supply curbs in December.

  • Unlike in 2014, oil producers are actively cutting production

  • to prevent another big drop in prices

  • to protect their economies.

  • This came even as US President Donald

  • Trump called on Saudi Arabia to keep production high and prices

  • low.

  • As major producers, how Saudi Arabia, Russia,

  • and the US battle for influence is being watched closely.

  • Even as Saudi Arabia and Russia say they will rein in supply

  • and bolster prices, this will only

  • benefit US shale oil companies.

  • One question is how long Opec and Russia

  • will be willing to indirectly help

  • rivals, such as the US, which is now the world's biggest

  • crude oil producer, and is becoming

  • a more competitive exporter.

In October, oil prices rallied to four-year highs,

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