Crude Oil Futures

  Among many factors that I follow closely when it comes to oil price, the US crude oil inventories always come at the top. Most of the analysts, if not all, may not take it that seriously, especially when it is drowned out by the factors that create more soundbites and optics. In a turbulent time what we are in now, the US the crude oil stocks has been rising during for the last three weeks, despite the US being nowhere near a full-blown lockdown that we see in Europe. It may be due to anticipated lockdown and rising coronavirus cases, coupled with the US presidential election outcome that may force the White House change the course. Oil price has dropped during the period of last two weeks and the likelihood of hitting below zero as it happened during the first lockdown remain next to impossible. On a positive front, unlike during the first lockdown, people are prepared to get on with their lives as much as they can rather than fretting and fuming over the inconveniences –

Oil price declined this week, reflecting the sentiments in the markets in the light of new Covid-19 lockdowns across Europe. Although it is far from a crash, the dip in price was in proportion to the ancipated downward demand for oil at the pumps - for obvious reasons. The lockdown measures announced in Europe haven't been emulated in the US - at least under Trump administration, for the time being. The exponential increase in the number of cases, however, may compel the authorities to take some measures to keep the threat at bay.  If that happens, there will be a significant impact on the price of oil. On a postive note, meanwhile, India and China record steady growth of demand for oil. It may somewhat dampen the gloomy sentiment in the markets right now. If Europeans leaders relaxed the measures gradually in the summer we would not have been where we are now. They can draw inspration from a few success stories to push the tide away: New Zealand, Thaiwan, Australia and Vietnam are