Oil price declined this week, reflecting the sentiments in the markets in the light of new Covid-19 lockdowns across Europe.
Although it is far from a crash, the dip in price was in proportion to the ancipated downward demand for oil at the pumps - for obvious reasons.
The lockdown measures announced in Europe haven't been emulated in the US - at least under Trump administration, for the time being.
The exponential increase in the number of cases, however, may compel the authorities to take some measures to keep the threat at bay.
If that happens, there will be a significant impact on the price of oil.
On a postive note, meanwhile, India and China record steady growth of demand for oil. It may somewhat dampen the gloomy sentiment in the markets right now.
If Europeans leaders relaxed the measures gradually in the summer we would not have been where we are now.
They can draw inspration from a few success stories to push the tide away: New Zealand, Thaiwan, Australia and Vietnam are some of them.
Oil charts that matter are here:
