Source: U.S. Energy Information Administration Brent crude oil spot prices averaged $107 per barrel (bbl) in July, marking the 13th consecutive month in which average Brent crude oil prices were between $107/bbl and $112/bbl (see graph above). Although supply growth from non-OPEC countries has outpaced world consumption in the past year, its potential price-reducing effect has been offset by unplanned supply outages among producers in the Organization of the Petroleum Exporting Countries (OPEC). The result has tightened world oil markets and placed upward pressure on prices. This price stability has been remarkable compared with the volatility seen as recently as two years ago, when Brent spot prices ranged from as high as $125/bbl in March 2012, to as low as $95/bbl in June 2012. Implied volatility (a measure of expected price variation) for the near-month Brent futures contract has averaged 18% over the past 12 months, compared with 28% […]