The production cuts by the OPEC+, coupled with continuous
inventory draws, are going to stabilize the oil prices according to the latest
report by the EIA.
Based on the latest forecast, the stability may be
already in the markets, which is often shadowed by unusual daily fluctuations,
triggered by sentiments of a given day.
More often than not, these subtle factors do not
directly influence the crude oil prices and yet markets respond to them.
Al though the second wave of coronavirus is upon us,
the activities haven’t come down to a screeching halt as they did during the
first wave – at least at the beginning.
For instance, there is considerable traffic on the
roads in Europe despite strict lockdown rules; schools are still open and so
are shops and supermarkets with strict guidelines on preventive measures.
If people take heed of the advice of the
professionals in the health sector, we may see a turn-around in about 2 to 3
weeks in line with what we witness in the rest of the world.
Both New Zealand and Australia managed the second
wave well despite the doom and gloom that prevailed at the beginning.
In short, the significance of Covid-19 as a
determining factor of crude oil prices is slowly losing its lustre and so will
the anticipated economic woes between the powerful nations, when the leaders in
question realize that this particular game is in no one’s interest.
Here are the live charts for you to see the trends:
