Oil Price: Saudi oil minister sees the light at the end of the tunnel

 

weekly oil price

Despite the wild fluctuations that we see in the oil markets in recent month in the middle of the pandemic, which, more often than not, punctuated by false dawns, Prince Abdulaziz bin Salman, the Saudi oil minister seems to be optimistic about the future of the his field.

Prince AdulAziz, however, chose to exercise caution in the same breath, because China’s imports are down and the US oil production has taken a hit already.

He is right because the pandemic has not been that lethal as it was during the lockdown, despite the explosive infection rates across the world.

On the other hand, countries that went into lockdown during the Second Wave, managed to keep the threat at bay with short-swift measures. For example, both New Zealand and Australia managed to contain the outbreak.

In those countries, life is limping back to normal and the demand for oil will go up in proportion.

In this context, Europe will also be able to manage the crisis in due course, buoyed by the public cooperation and relatively tough control mechanism. There are still significant amount of traffic on the roads and the trend will stay that way unless authorities decide otherwise.

In this context, Prince Abdulaziz’s assessment does not stem from misplaced optimism; on the contrary, it reflects the ground reality in the months to come.

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