Oil Price: recovery on track as US crude inventories fall by 11 billion barrels last week
The price of oil on the rise again in the markets, buoyed by a combination of factors. Among them, in my opinion, the steady fall of US oil crude inventories stands above the rest, showing the significance of the US demand in the commodity.
In addition, sanity seems to have broken out in the OPEC block, which blows hot and cold over the issue of production cuts, as the members of the very block are struggling to balance the books.
For instance, federations like the UAE have taken pragmatic steps to shore up the economies, badly hit by the effect of the pandemic as well as rock-bottom oil prices.
The UAE has taken steps to ease social restrictions such as the consumption of alcohol in public and even the unthinkable co-habitation, perhaps causing unease among the conservatives. The motive of the authorities, however, is clear: they want to encourage inward investment and tourism. They have already walked the extrra mile by establishing full diplomatic connections with Israel.
Investors believe that pandemic will be under control in a matter of months and the oil price recovery shows then sentiment across the world.
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