Oil Price: the long road to recovery and green shoots
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.
