India established new lockdown policies last week. New case numbers are rising in many countries all over the world. The global scale vaccination is not fast enough to stop the virus. The recent flare-up is a concern for oil demand.
In the last meeting and before the new Covid concern, OPEC eased the cut for a new wave of demand in summer.
Days after, the Saudi energy minister, Prince Abdulaziz bin Salman hinted that the cartel vote is not set in stone.
It clearly indicates that the market current situation is vague.
People are worried about another sharp decline as same as the last pandemic cycle.
Besides the pandemic-related uncertainty and OPEC decision, there is more oil coming from Libya, Venezuela and Iran.
If the U.S and Iran reach an agreement, which they probably will, Iran will officially supply 2 million bpd into the global markets.
FOMC meeting minutes reassured the market that authorities do not stop
the expansionary policies by increase of the U.S. bonds 10 years yield. The fact indicates
that we are not going to see much of a strong dollar in the next weeks.
Stocks were rocking and D&J could rise to a new top record.
As Infinity Galaxy reported in the last row of the oil weekly reviews, Brent stayed in the strong zone of $60-65 and it could not break through the channel. Although stocks are rising, the current price momentum and demand rate are not promising for any stable high price in oil.
This article was prepared by Mahnaz GolMohammadian (www.infinitygalaxy.org).