Coronavirus New Strain: Oil price remains fairly stable

 

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Data Source: EIA




The news about the new Coronavirus strain, quite unfairly, stigmatized the United Kingdom with some countries banning any physical contacts with its inhabitants.

 

The evolution of a virus in nothing new; the seasonal flu viruses do it all the time, while staying a step ahead of vaccine available at a given time.

 

In this context, Coronavirus will evolve too and pose a challenge to the few vaccines in the public domain at present.

 

Although the new strain of the virus is said to be much more contagious than its predecessor that almost brought the entire world to its knees in spring this year, how ferocious the former remains to be seen.

 

The initial indications are, encouragingly, it is not that deadly.

 

If that is the case, this virus – or any other virus for that matter – seems to be conscious of what it is doing without the organs that we possess in biological sense.

 

Since medical science has no explanation why they mushroom across the world simultaneously, we are left with draw our own conclusions in a functioning democracy.

 

These viruses do not want to destroy their hosts; it’s not rocket science to understand that the end of the host is then end of the virus too.

 

In this context, we can hope the new virus strain is less deadly and may be able to see the light at the end of the tunnel.

 

That may be the reason oil price did not react to the new virus strain and corresponding travel ban and lockdowns the way it did in April last year.

 

In short, markets did not overreact to the new form of the old crisis and it will be relatively stable in the coming weeks without plummeting.

 

The price fluctuations, however, will reflect our inability to inhibit alarming news perpetually. Oil price will bounce back, though.

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