Crude oil markets made a significant recovery on
Monday, having been through disturbing price fluctuations in the last few days.
As of 18:00 GMT, the price of WTI and Brent stood at $65.52 and $68.60 with a
rise of 5.44% and 5.25% respectively.
Since there was no change in the factors that
usually affect the crude oil price at the weekend, the fall of price may be due
to the negative sentiments that stemmed from the rapid fall of Afghanistan government,
coupled with the US abrupt withdraw – and of course, the chaos ensued.
Since Taliban stuck to its words so far, the tension
in Kabul is in decline and normalcy returns to the capital. The anxieties of
people, however, remain the same.
The recovery of the crude oil markets, in this
context, appears to be linked to the relative calm in Afghanistan and the possibility
of yet another foreign intervention being low.
Neither the Taliban nor its neighbours is out of the
woods yet, though. The former has been adamant that the foreign troops must
leave by the end of August, honouring their pledge.
If the optimism seen in the crude oil markets is not
eclipsed by the US weekly inventory data due in two days, the recovery of the
price will make progress at a slower rate.
The markets are watching the next move by the OPEC+
too. Although the organization does not see a need for increase the output, it
has not rejected the US request emphatically either; if the price keeps rising
steeply, then the OPEC+ will be compelled to address the US concerns.
