Weekly Oil Price Drop: it's not that significant
Although oil price dropped this week, the fall is not that significant, when compared with what it was last week. The drop in price, however, has rattled the markets somewhat, as the factors which usually influence the oil price were not in favour of an unstoppable rally. For example, the US crude oil inventories have gone up, deviating from the trend that had been the opposite for a few weeks. In addition, the high infection rates – and the deaths too – both in the US and Europe have finally had an impact on the investor-confidence. The fear of stricter lockdowns in China may have played a role too, as the latter is a key player when it comes to global demand. In this context, the twin move by the UAE and Saudi Arabia to cash in on the situation does not seem to be working in the long run; not only did they increase the crude oil price for Asia, but also cut down on the output, while warning the US shale producers not to flood the market with excess oil; whether the latter w