Oil Price Fluctuation: the US crude oil build-up drives the trend

oil price wednesday

The oil price fluctuated much more than it did in  the previous week, purely owing to the news that US oil inventories have gone up, deviating from the existing trend.

The price has been moving upwards recently in inverse proportion to the build-up of the US crude stocks.

The development once agains shows the strong correlation between the US oil inventories and oil price.

Of course, there are other factors that affect the oil price directly. The discovery of new oil fields in Africa and the dawn of some form of stability in Libya and Iraq may have played a role too on the supply side of the equation.

The surging Covid-19 infections in the US will definitely push people off the pumps and will cast a shadow over the sentiments in the markets.

The good news from India and Australia on this front, however, will make the trend short-lived; the threat of Covid-19 infection can be kept at bay - by strict restrictions enforced during short periods.

Oil charts that matter are here:

Oil Charts

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