The Avanti Group comments as the Federal Reserve adjusts its finances there is considerable scope for financial gains created from the uncertainties in the global oil market.
The Avanti Group the equities research house based in Tokyo, providing professional trading and investment research solutions to institutional and private investors across the globe is closely following the developments as to how the tapering of the Quantitative Easing program that is currently in process by the Federal Reserve in the US, is resulting in indications that oil prices will remain volatile for the remainder of 2013. This is apparent from the global economic uncertainty that is currently evident, especially in Europe and the People's Republic of China.
"What we are especially interested in looking at is how the development of OPEC's strategy transpires and how they intend to manage keeping the price of crude oil above the USD $100 mark, especially considering the recent increases of output levels of crude by countries that are not part of OPEC the Organization of Petroleum Exporting Countries," said Andrew Taylor Senior Vice President of Mergers and Acquisitions at The Avanti Group.
It is generally speculated amongst the financial market traders worldwide that oil prices will remain high for the remaining half of this year, as it is a matter of course that consumers in the West typically take vacations in the third quarter of the year for the summer holiday period in the Northern Hemisphere. An additional factor to surge of use as the demand for Oil usually increases higher during hurricane season in the Atlantic region in the following quarter entering the winter season.
Approaching the end of last year Dubai's price for a barrel of crude oil fetched USD $107 gaining in January and February of this year reaching a high of USD $113 per barrel, prices eased following the unusually slow process of Italy forming a government after their general election and concerns of Fed tapering amongst the European debt crisis.
"To add to this the global economic situation then worsened as the second largest bank in Cyprus was expected to collapse thereby increasing concerns about the real state of the European debt crisis. This was further exacerbated by an economic slowdown in China.
"We have a responsibility to constantly provide solutions to keep our clients' portfolios balanced so, knowing where and when, how and why oil and other commodities will rise and where they will fall allows our teams of advisors to direct investment effectively and provide the required skilled management advice for our associates funds," concluded Andrew Taylor Senior Vice President of Mergers and Acquisitions at The Avanti Group.
The Avanti Group is an equity research house providing research and analysis outsourcing solutions for institutional financial traders worldwide, founded in early 2003.