Stalled Oil Price Recovery: a factor often overlooked

 

Heathrow Skies on Tuesday



Oil price has stalled and the stagnation, coupled with gloomy outlook on many other fronts, have left economists and analysts in limbo, as the combination of existing knowledge and experience does not give an impetus to come up with a solution.

Whatever the in-depth analyses that surface in heightened frequencies to explain the crisis, it still stems from age-old concept of demand-supply.

Although the focus is heavily on the industrial output and vehicular transport, those who watch the movements often overlook the factor of air transport and the demand for jet fuel that is the main factor in it.

The above animation shows the number of airplanes in the skies above Heathrow on Tuesday morning – just 5 in total; two Middle Eastern airlines and one British airline.

As someone who has been living below the flightpath near Heathrow, I used to notice an airplane once in every two minutes in the skies before the lockdown. It’s a far cry from what we used to notice.

This is not just a crisis for Heathrow, one of the busiest airports in the world. All global hubs are in the same predicament.

No wonder, there is no sign of recovery for the demand of jet fuel. That means the entire industry that is engaged in transportation and sale has been forced to stare into a scary abyss.

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