Oil price boom continues despite the gloomy forecasts

weekly oil price



Oil price rise continued throughout the week despite worrying economic activities due to increased virus infections - across the world.

It's the third wave that is yet to reach its peak and policy makers are collectively scratching their heads to find solutions to mitigate the inevitable impact.

The only solution at present is the news about the effectiveness of a few vaccines. Their efficacy, however, remains to be seen.

Adding insult to injury, the virus is evolving and we can only hope that it will not a few steps ahead of vaccine manufactures, as it often happens with winter flue vaccines.

Perhaps, the hope of the potential of the vaccines and the Coronavirus-fatigue keep investors put their faith in buying stocks; they instinctively know, perhaps, the dark days in April, 2020, when oil price hit below zero, may not repeat in a cyclic way.

Since geopolitical developments are fairly stable in the Middle East, there are no signs of supply disruptions in the region in the foreseeable future, which is encouraging. There are no signs of demand-collapsing either despite the risk of exponential increase in infections, because they mimic a wave - a crest followed by relatively long trough

 

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