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Showing posts from October 4, 2020

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

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  A fter 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

Oil Price: US inventory counts remain low for weeks

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The oil price went down last week, partly due to the unprecedented coronavirus outbreak in the White House. In fact, President Trump’s infection overshadowed a more crucial fact that normally determines the price of commodity; it’s the tendency of the market being flooded by excess oil, as desperate producers are impatient to keep selling oil in order to balance their books. The other crucial factor, however, remains in a position that always favours keeping up the price at the current level, despite understandable fluctuations. The crude oil inventories in the US continue to decline in the past few weeks, which clearly indicate a steady demand in oil. It’s still, according to the EIA - the US Energy Information Administration - 20% below 5-year-average, though. At present, oil producers, including some members of the OPEC, are like livestock in a corral – waiting to come out of the artificial barrier of production cuts imposed on them to shore up the price. Markets are fully

Crude Oil: latest news