Oil Price: planes are back in the skies; jet fuel consumption picks up


Heathrow Skies on Thursday

According to the latest data from the EIA, US Energy Information Administration, the US crude oil inventories recorded their biggest drop in two months – a fall by 5.89 million barrels.

With that, three major global agencies that analyse all aspects of the realm of energy finally emerged with a single voice with regard to the future demand of crude oil; it is steadily recovering and approaching the pre-pandemic level.

US crude oil inventories - EIA

There is enough evidence to be optimistic: the combined growth in China and the US is encouraging; the planes are back in the skies in large numbers, slowly reaching the pre-pandemic level; the jet fuel consumption has picked up, having been in stagnation for months.

Although the crude oil price slightly fell on Thursday, in light of the latest encouraging data, there is no cause for anxiety; the price will pick up again as the sparks for the price-engine are there for all to see.

Despite the emergence of feel-good factors, the situation in India is a major concern; the world’s third largest crude oil consumer is going through a pretty disturbing phase of its pandemic; there were over 200,000 new cases just on Thursday, leaving it as the second biggest nation affected by the virus, after Brazil.

Successful vaccine rollout in the US and UK is attributed for keeping pandemic threat at bay in both countries, although neither is out of the woods yet. Although, India started a successful vaccine rollout a few months ago, it slowly lost its momentum – due to lots of geographical factors, coupled with inter-state politics.

Judging by the rate of increase in infections, India may be on the brink of yet another lockdown; the capital, Delhi, will be under curfew as of today and Mumbai, the commercial capital, will be under the same soon.

All in all, it looks like we have to live with the pandemic for another year until it naturally dies down despite the speed of the vaccine rollout and its success; this is what happened with the pandemic of the Spanish flue in 1918 that lasted two years – despite the absence of such a process called vaccine rollout at that time.

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