Oil price slipped in the market on Thursday and
likely to remain this way for the next few days.
Some analysts were quick to relate the drop in price
with President Trump being Covid-19 positive, despite the former happened a day
before the latter’s official announcement about the infection.
As for the coronavirus infection of the First
Couple, there are no indications of a major health scare; they might not even
have symptom of the disease. Yet, some media has begun analysing the worst case
scenarios, which in turn affect the market sentiments.
It looks like the markets responded to the news that
OPEC increased the output by over a million barrels a day. The boost in
production can be attributed to an increase in demand, a fact reflected by the
EIA that said that the US oil inventories are on decline.
In this context, it is not right to dub the dip in
price as a correction, correction took place years before.
As long as the US oil inventories are on decline,
the oil price gets its upward momentum from it, not from President Trump’s body
temperature data.
