Oil prices hampered by increasing coronavirus cases

Published:

On: Jan 2021

Based on the currently released report, oil prices diminished on Tuesday because investors remained extremely worried about gaining coronavirus pandemic cases across the globe, though an expected drawdown in crude oil inventory in the United States of America for a 5th straight week derived losses.

According to the source, the worldwide COVID-19 cases surpassed around 90 million on yesterday, because several nations across the world has been climbed to procure coronavirus vaccinations and meanwhile, continue to expand or re-establish lockdowns in order combat the variants of new coronavirus. 

The head of global market strategist of Axi, Stephen Innes said in a statement while citing the prospect of gained economic stimulus in the United States of America, as per my perspective, the oil industry will be excited to conclude that yesterday’s pullback in oil prices offered the coronavirus spread in China remains accommodated, but it was a tap on the radar screen.

The United States president-elect Joe Biden who joins office on 20th of January along with his Democratic party in administration of both Houses, which has promised trillions in additional COVID-19 pandemic relief spending. The United States crude oil inventory has been declined for a 5th straight week, while on the other hand, refined products inventories were observed up previous week, a preliminary data showed on Monday.

The information was organized from well-known group American Petroleum Institute on yesterday as well as the Energy Information Administration (EIA), which is the statistical part of the United States Department of Energy. Goldman Sachs stated that Brent crude futures could increase to around $65 per barrel by summer season this year, which has been driven by Saudi decline and indications of move in power to the Democrats in the United States. Reportedly, the Wall Street investment bank had previously estimated oil would hamper $65 by the end of the year.