Oil Prices are steday - finally: sanity breaks out in the markets!

 

Oil price on Thursday

After inexplicable fluctuations, the oil price has reached where it should be – at last. Some analysts, unfortunately, tend to attribute it to the onset of Hurricane Delta, a category-3 storm.

The reliably-modelled data shows that the storm appears to die out as it reaches the mainland. In this context, plant closures that could potentially affect the supply chain are a bit hyped up.

Hurricane Delta


There are many other vital factors at play that often overlooked, though: the US crude oil inventories are on decline for weeks and they remain consistent; there is evidence that the supply will not be interrupted, even in the region that is not usually the case; productions are picking up and so are the vehicular movements.

Of  course, the crisis in the airline industry is far from over; the optimism that that there will be some form of breakthrough in dealing with the pandemic is growing as so many brilliant minds are tirelessly working on it, some of them even not expecting nothing in return as a way of doing something for humanity.

On a positive note, it can be safely assumed that the oil price will recover gradually and the day it crashed below $0 may not be repeated once more, even if the epidemic will raise its ugly head, once or twice more.

If you look at the Far-East, that is how people adapt themselves to live with deadly diseases as the time goes by. Dengue fever is a case in point; it’s much deadlier than coronavirus and a bite from a mosquito carrying the virus, more often than not, guarantees a bout of fever, something if ignored, could almost cause death.

The danger has been lurking in the region for years now; yet the life goes on, despite the lack of success of a vaccine and anti-viral drug for treatment. The rest, ample amount of water intake and common sense often lead to the perfect healing.

All in all, the oil price will recover and will stay at current level for months to come. If it reaches a bit beyond break-even point, the investors can breathe a long sigh of relief – in the current circumstances. 

After inexplicable fluctuations, the oil price has reached where it should be – at last. Some analysts, unfortunately, tend to attribute it to the onset of Hurricane Delta, a category-3 storm.

The reliably-modelled data shows that the storm appears to die out as it reaches the mainland. In this context, plant closures that could potentially affect the supply chain are a bit hyped up.

There are many other vital factors at play that often overlooked, though: the US crude oil inventories are on decline for weeks and they remain consistent; there is evidence that the supply will not be interrupted, even in the region that is not usually the case; productions are picking up and so are the vehicular movements.

Of  course, the crisis in the airline industry is far from over; the optimism that that there will be some form of breakthrough in dealing with the pandemic is growing as so many brilliant minds are tirelessly working on it, some of them even not expecting nothing in return as a way of doing something for humanity.

On a positive note, it can be safely assumed that the oil price will recover gradually and the day it crashed below $0 may not be repeated once more, even if the epidemic will raise its ugly head, once or twice more.

If you look at the Far-East, that is how people adapt themselves to live with deadly diseases as the time goes by. Dengue fever is a case in point; it’s much deadlier than coronavirus and a bite from a mosquito carrying the virus, more often than not, guarantees a bout of fever, something if ignored, could almost cause death.

The danger has been lurking in the region for years now; yet the life goes on, despite the lack of success of a vaccine and anti-viral drug for treatment. The rest, ample amount of water intake and common sense often lead to the perfect healing.

All in all, the oil price will recover and will stay at current level for months to come. If it reaches a bit beyond break-even point, the investors can breathe a long sigh of relief – in the current circumstances.

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