Oil price: is this the only chart that behaves consistently - during good and bad times?

brent-wti crude oil price

The crude oil price, at least shown by two primary benchmarks – WTI and Brent – has dropped today, finally being subject to the uncontrollable rate of infections of the Coronavirus across the globe despite the heightened enthusiasm about the vaccinations.

The arrival of Mr Joe Biden to the White House in order to take the reins of the most powerful nation on the planet did not create the desired effect, dreamed of by the markets.

Some benchmarks, however, such as OPEC Basket and Indian Basket are slightly up, buckling the trend.

Both WTI and Brent, on the other hand,  showed their mutual closeness in following the trend in oil price once again, when some charts give out conflicting signals; it has been the pattern during both good times and bad times.

Since the Western political thinking is inextricably linked to the two benchmarks in question, their behaviour in understandable in this context without using one’s grey matter.

The Dubai benchmark, meanwhile, is also up despite being a primary benchmark. It means the region is optimistic about the revival of oil price being irreversible due to the production cuts initiated by the OPEC and boosted by Saudi Arabia.







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