The weekly oil price remains static despite frequent
daily fluctuations.
Saudi Arabia’s desire to cut oil output further has
had an impact on the supply side of equation; whether the rest of the members
agree with the word’s top exporter of crude oil remains to be seen.
When the oil price increases at this rate, unlike
when it happened years ago, there is a standing army to intervene – the shale
oil producers.
There are clear signs that they will chip in at any
time – much sooner than analysts think they would.
Some OPEC+ members may be nervous about treading on the
road more travelled by the organisation in its history.
It looks like that the markets do not show knee-jerk
reactions to the lockdowns anymore; they, instead, focus on the output, crude
oil stocks and economic data from the world’s top users in Asia.
