Nonfundamentals bringing markets back to senses.

Byline: Syed Rashid Husain

What a sharp contrast indeed! Markets sentiments have changed drastically over the last few weeks and oil markets, like in fact any other market, are largely influenced by sheer sentiments. Barely a few weeks ago, it was the soaring prices that were gripping the world's attention. Saudi Arabia and other oil producers were literally on the firing line for not opening up the taps, as desired by some in the West. Now almost all of a sudden, prices have started to decline, with oil markets losing almost 20 percent since their peak attained on July 11.

One vividly recalls that in the immediate aftermath of the Jeddah Energy summit on June 22, when Saudi Arabia announced increasing the output by another 200,000 barrels per day, not many people at the Hilton in Jeddah that evening seemed convinced and satisfied. Many accused it of doing …