As the global demand for oil continues to undergo an unbalanced recovery, the price of oil has slipped below $69 per barrel. Since failing to pass the $70 mark on Wednesday, global benchmark Brent has been unable to regain momentum.
Much of the inconsistency is the result of wavering performances by top crude importers such as India, a nation that is currently struggling with a record outbreak of the coronavirus pandemic within its borders.
On the other hand, there have been major signs of recovery in other nations, with the likes of Spain progressing gradually thanks to firms such as Cepsa starting a processing unit that was previously idled. One of the most impressive comebacks is that of the United States, which is now running at five-year average levels for the first time since the initial outbreak of COVID-19.
Hans van Cleef, senior energy economist at ABN Amro, released the following statement regarding the current oil prices: “Prices flirt with the $70 mark, but fail to push higher. From a fundamental perspective we have demand uncertainties and a lot of OPEC+ spare capacity to meet any rise in demand.”
