Oil price: why did falling US crude oil inventories fail to do the trick this time?

 

us crude oil inventories drop

The substantial fall of US crude oil stockpiles has not excited the oil price yet, buckling the familiar trend.

The positive news has been overshadowed by a myriad of factors, according to seasoned market watchers.

Some of the key reasons are as follows:

·       The Federal Reserve makes it known the inevitability of its continuing support to revive the battered economy

·       The outbreak of Covid-19 clusters again in China in the middle of winter

·       The reluctance of the Chinese to travel and engage in shopping with the arrival of the Chinese New Year

·       Intense lockdowns in the US and China

·       The logistical problems faced by Vaccine producers

·       The lingering doubts about the efficacy of existing vaccines against new variants of Covid-19

·       The advice against unnecessary travels within or outside the borders by European countries

·       Less traffic on the road with air travels at a bare minimum, mainly for vital cargo transportation

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