Psychological booster for crude oil markets: covid-19 infections in India in decline

 

India covid-19 recovery

The crude oil price dipped on Thursday and it was solely attributed to the weaker-than-expected US economic data that in turn made the US dollar stronger.

The mood in the markets was not lifted up, even after a relatively successful summit between President Biden and President Putin in Switzerland; that was not something expected either – at least by the media.

The talks over the JCPOA, 2015 Iran nuclear deal, meanwhile, are continuing in Vienna, Austria, in its sixth round and the Iranian delegation was much more hopeful about an agreement yesterday, as never before.

This could have been a trigger to push crude oil price downward on Thursday, something that is still continuing on Friday.

Both WTI and Brent went down by 1.32% and 1.572% respectively before the markets closed on Thursday.

Despite the palpable uncertainty in the crude oil markets, there is a glimmer of hope for the battered Indian economy: the Coronavirus infections are in decline and so are the deaths.

Since India is the world’s third largest consumer of crude oil, analysts believe that the demand will grow steadily up, defying local price rises of oil products in the past few weeks.

In proportion, the oil imports by India will be back on track, especially from the Middle East. Since the strained relationship between India and Saudi Arabia is finally on the mend, an accelerated boost from India will reflect well on the producers in the region.

If Iran is allowed back into the international oil markets, the wheels of oil power can move in unexpected directions, though. The GCC, Gulf Cooperation Council that consists of mainly Sunni Arab nations in the Middle East, has already raised concerns over a nuclear deal with Shite Iran, without proper regulations in place; Iran recently referred to them as ‘West Asian regimes’.

The US, meanwhile, must be under pressure from yet another West Asian player over the issue – Israel, the arch enemy in the eyes of Iranian conservatives.

Iranians are voting today to elect their new president and a low turnout is a major concern, not only for the selected candidates, but also for the Supreme Leader.

Although the outcome appears to be a foregone conclusion, the president-in-waiting may move away from hard line policies when it comes to international politics and economic matters, despite hailing from a highly conservative background; increasingly optimistic mood of the Iranian delegation involved in the talks over the JCPOA in Vienna reflects a potential change in direction in international  policies.

 

Popular Posts

Wil Iran attack Israel soon? Only time will tell!

Image
  Credit: Google Maps With Iran's threat against Israel in a direct strike, the tension in the Middle East went up a few notches on the scale of uncertainty, as the United States made it clear once again that it would not be a passive observer if a conflict erupts. The rising tension came in the wake of the daring attack carried out by Israeli F-35 fighter jets on the building that was adjacent to the Iranian embassy in Damascus, the Syrian capital. Seven Iranian nationals, along with a few Syrians, died in the attack, two of them were from the elite Iranian IRGC - Republican Guards; they were very high ranking officers. In response to the attack, Ayatollahs Ali Khamenei, the Iranian  supreme leader, said that Israel will be punished in kind, during an Eid message on Wednesday; he did not imply in what form the retaliation could come; nor did he say whether it was imminent, leaving the ambiguity open to interpretation by military and political analysts. The supreme leader, however,
Read more

Will Venezuela manage to extend the period of waiver of sanctions?

Image
  Chart:www.oilfutures.co.uk | Data: OPEC As the 53rd JMCC, Joint Ministerial Monitoring Committee, of the OPEC+ is scheduled to take place on April 3, analysts are looking at every possible scenario that could rise in the aftermath of such a meeting. A consensus has already emerged among them that the OPEC+ would stick to its production quota for each member country. That means the official position of the OPEC+ will maintain the current production cuts as long as necessary, without increasing the production to appease the influential customers.  The cartel wants to stick to the production targets, already agreed upon, in 2024 without unnecessarily worries about the potential consequences.  With the OPEC+ sticking to it guns, without increasing the output, the top consumers of oil turned to Venezuela to buy it on the cheap as the former was given a waiver to increase the production and then sell, provided that free and fair elections will be held before the waiver expires. Venezuela i
Read more

The Sun goes on Vacation: total solar eclipse - April 8, 2024

Image
Total Solar Eclipse: April 8, 2024: Vivax Solutions The lucky folks along a relatively narrow geographical band, from Mexico all the way to Canda, are going to witness a rare celestial spectacle on Monday, April 8 – a total solar eclipse. The path of totality – where people can witness total darkness - cuts across fifteen US states, before rolling into Canada in its final mesmerising leg. In mathematical proportion to the excitement, the enviably famous American entrepreneurial spirit has already gone into full swing: the hotel bookings, closer to the path of totality, have gone up exponentially and so have the prices; in addition, traders lost no time in springing into action in promoting related merchandise and of course, safety goggles, while implying that exercising caution before looking heavenward is a virtue, indeed.    The excitement that borders on ecstasy is perfectly understandable: astronomical charts show that there will not be another total eclipse for twenty years th
Read more

Latest Energy News from EIA