Crude Oil Futures

The world, apart from a few nations in Asia without Africa, is bracing for a new wave of the Covid-19 pandemic. Whether it is the so-called Second Wave or a mere extension of the First Wave does not really matter. The panic level is not as bad as that of the First Wave, as people are slowly getting used to live with it. Since mortality rate remains relatively low in the latest spike, normal activities continues unabated in most sectors, if not all, unless being subjected to the government’s strict guidelines. There are still plenty of vehicles on the roads and factories function. Goods are transported to and fro and public transport hasn’t come to a screeching standstill. This must be the universal picture, not just in Europe and America. On the other hand the African continent has so far been left relatively unscathed, defying the gloom and doom predicted by some experts due scarcity of healthcare facilities in general. If human activities continue, even at a slower pace, cr

  Oil price may have fluctuated slightly this week, perhaps due to the anticipated disruption to production and distribution in the wake of Hurricane Delta. The inventory data from EIA, US Energy Information Administration, meanwhile, shows that the downward trend continues, giving hope to investors that yet another crash like that happened in April this year is highly unlikely. The oil producing nations have been severely hit by economic downturn, amplified by the Covid-19 pandemic. In these circumstances, the OPEC members cannot keep reducing production indefinitely just because they are under obligation to act in unison; it’s easier said than done. On the other hand, the production cuts did not produce the desired outcome for the organisation. In this context, the Saudis showed pragmatism by reducing the price of crude sold to Asia, a few weeks ago; it was a step in the right direction, as the region was not hurt as bad as Europe and America did during the pandemic. Of cou