Oil Price: the long road to recovery and green shoots

 

oil price boost

The traffic data gathered by Reuters, based on TomTom traffic indicators, clearly show an upward trend in traffic in London, Paris and New York. People use private vehicles to move between cities and towns for their needs, which could boost the demand for gasoline.

Although it’s a positive factor in favour of increasing the consumption of fuel, short trips may not increase the demand of oil considerably in the short-term.

In Beijing and Moscow, meanwhile, traffic has reached pre-pandemic level, according to Reuters.

By contrast, most people avoid public transport for the fear of catching Covid-19. This is particular the case in London; in Paris, however, people use the public transport more than they do in London or New York.

On a negative note, the report says that the sale of vehicles is significantly down that could affect the sale of oil in the long run. To make matters worse, a significant number of the workforce have opted for working from home.

In addition, the surge in random outbreaks of infections will not boost the positive sentiment in the markets.

The dwindling intensity in reacting to these outbreaks by the analysts is a catalyst to the oil markets in their struggle keep the vital industry viable in the foreseeable future.

 All charts that matter for the oil price are here:

Oil Charts

Comments

Popular posts from this blog

Oil price closer to $70 a barrel: it's more realistic, sustainable and better than pursuing unrealistic goals

Oil Price and Lingering Suez Factor

What caused the downward trend in crude oil price?

Crude Oil: latest news