Tuesday, 25 January 2022

Oil Prices Crash On 2nd Wave Of Coronavirus

MANCHESTER: Oil has had a turbulent year. Crude prices went negative for the first time in history, followed by one of the biggest rallies the industry has ever seen. And now, just when the market is starting to seem somewhat stable, COVID-19 strikes again.

A resurgence of COVID cases in the United States and a gloomy economic forecast from Federal Reserve Chair Jerome Powell has investors scrambling, with oil prices on track to hit their biggest daily decline since April 27th. Once again, oversupply and lack of demand have taken center stage.

Yesterday, the EIA reported that U.S. oil inventories rose by 5.7 million barrels, defying predictions of a 1.45 million barrel build. Adding even more pressure to oil prices, the U.S. Federal Reserve noted that unemployment rates were set to settle near 9.3% by the end of the year, adding that it could take years to return to pre-pandemic employment levels.

COVID-19 has been the main culprit in the market collapse. While many states have already reopened with some strict guidelines, things don’t seem to be going as planned.

Check Also

Porsche to set up joint venture with Customcells

© Reuters. FILE PHOTO: A Porsche Taycan electrical automobile (EV) is seen displayed throughout a ...

Leave a Reply