Crude faces rude reality, in spite of recent price gains
Brent crude price, an international benchmark, slipped below $16/bbl to a 21-year low in April. It has since recovered, with prices climbing in recent weeks. Last week, Brent went past $51/bbl, but it’s still a far cry from the heydays of 2008 when prices topped $140/bbl. Mint explores
What are the current key drivers of crude?
The development and roll-out of vaccines has raised optimism that covid-19 could soon be controlled, allowing more factories to reopen and people to move about, thereby lifting demand for fuel. Big oil guzzlers such as the US, Britain, and Canada have kick-started the vaccination drive. India may also start immunization soon. Crude oil throughput in China marked a record increase in November compared with the same month a year ago, indicating a growing demand from the world’s second-largest oil consumer. Expectations that the US would soon unveil a fresh round of stimulus to bolster economy have also aided crude.
