The oil price went down substantially today despite
the encouraging news from airline industry about a slow, but steady recovery.
The hopes, unfortunately, were dashed when the new
data emerges from India shows there is a steep rise in Covid-19 in India,
especially in Maharashtra state where the commercial capital, Mumbai, is in.
The oil markets are always keen on watching the
economic activities of the world’s third largest crude oil consumer. They pin
their hopes on a rapid recovery from the worst economic contraction in 70
years, stemmed from a relatively successful vaccine drive.
It’s true that Indians dropped their guard somewhat
while hoping the success of the distribution of vaccines would deal with the
problem once and for all; the steep rise in Covid-19 infections clearly show
that’s not the case, perhaps sending out a warning to the rest of the world too.
In neighbouring Pakistan too, there is an alarming
rise in infections. Making matters worse for authorities, a rumour is spreading
in the country about some of the content in the vaccines that is forbidden in
Islam, which may put people off the vaccines when the collective sentiment
reaches its critical mass, especially in the rural areas.
In Europe too, there is not much for celebration in
terms of a post-pandemic era; France, Germany, Italy and Poland are on the
brink of yet another major lockdown; these countries, however, could not get
the vaccine drive underway successfully as the United Kingdom did, owing to
some logistical issues; the anti-vaccine sentiment in the continental Europe is
high too.
Summer holidays, meanwhile, are going to be banned
for the second successive year due the pandemic, dealing a crushing blow to the
tourism sector.
As of Monday, next week, anyone who goes to an
airport without a valid reason will be fined £5000; similar restriction will be
imposed on visitors too, especially if they are from Western Europe – for obvious
reasons.
The government in the United Kingdom is trying its
best to keep the threat at bay in order to minimize the loss of lives; although
it may not go down very well with some of its own MPs.
All in all, a grim spectacle in on the rise again
despite the endless precautions against the virus and the exponential increase
in the vaccinations worldwide; this will take its toll on markets in the coming
weeks and oil markets will not immune to it.
