Showing posts from February 6, 2022

Will the rising oil price become a drag on global consumption?

  Although the price of crude oil is hovering around $90 a barrel as of now, the US crude oil inventories dropped for two successive weeks, implying that the demand is in the recovery mode despite the surge in relatively mild Omicron variant of the Coronavirus. The EIA, US Energy Information Administration, reported that the US crude inventories fell by 4.8 million barrels for the week ending February 4, on Wednesday. Last week, the EIA said in its weekly data release that the US inventories fell by more than 1 million barrels. The consistency in falling US inventories helped crude oil markets to maintain the current price levels, despite that being detrimental to the recovery of global economies, battered by Covid-19. For instance, in India, the world’s third biggest consumer, the use of diesel fell by 12.8% in January; since 40% Indian fuel consumption is diesel, its impact has been widely felt by the country’s crude oil sectors. Of course, the state-wide curbs on the free