Despite the rise in Covid-19 infections across the
world, the accelerated pace of vaccinations managed to keep the optimism alive
by keeping the old, dark days in 2020 behind us.
In a positive, encouraging development, the crude
oil futures for June have risen, causing a hole in the bubble of doom: WTI
crude and Brent crude rose by $0.32 and $0.34 respectively, while generating a
pulse of surprise in the crude oil markets.
Of course, the latest economic data from the US is
highly encouraging. The economic package unveiled by the new US administration
is behind an unprecedented public spending boom that led to the latest forecast
by the IMF full of optimism.
In China, the world’s second largest economy, too,
the latest data shows a steep growth.
The US oil stockpiles, meanwhile, which fell during
the week ending 26 March, are going to go down again, according to the latest
forecast by the API, the American Petroleum Institute.
On yet another positive note, the talks between Iran
and the West are continuing with cautious optimism; although Iran seems to
maintain a ‘tough’ stand during the negotiations, the ground realities are
different: it really wants to revive its oil trade and sanctions lifted in
order to enter the international financial markets again.
Investors are not paying undue attention to the spat
between Saudi Arabia and India, the world’s third largest consumer, that has
been simmering for weeks over the crude production cuts; it’s surprising that
the surge in Covid-19 infections in India, which could easily hamper the demand
of crude oil, did not deter investors either.
Having seen the pattern of the first two waves of
the pandemic, investors know they have relatively-short life cycles; we
generally come out of them and risk are still manageable, if individuals
perform their civil duties without making a fuss.
The rise in crude oil futures for June came about at
a time when quite a few geo-political developments revolve around the market
sentiments. In this context, it’s significant as markets know the future is
bright amidst uncertainties.
