Tillerson: Demand uncertainty leading to volatility

The current crude price volatility is being driven more by an uncertain demand outlook rather than an unclear supply picture, former ExxonMobil chief executive and ex-US secretary of state Rex Tillerson said today.

Investors are becoming increasingly risk averse because of an accumulation of factors that is raising questions on the health of the global economy. Those factors include ongoing trade wars, Brexit and Europe's growth outlook, Tillerson said at KPMG's annual energy conference in Houston, Texas.

"The global economy in general has people wanting to press the pause button," Tillerson said. "It is not any one thing. It is rarely generally one thing."

Despite the unpredictable supply outlook from countries including Venezuela and Iran, the global oil market is going through "an unprecedented period of supply certainty," he said.