Volatile market for crude oil

The advance and retreat on the news of the current pandemic reflect its effects on the markets. In this case, oil is not exempt and is one of the most affected. Its price for a year ago dragged losses and when the outlook provides clarity, new infections, restrictions or even problems with vaccination, affect the price again.

This Thursday the price suffered its biggest loss in a day since November, caused by this speculative context of an uneven global recovery.

This effect derives from the sum of events that brought the price of the BRENT and WTI futures to $ 65.36 and $ 61.92 dollars per barrel of oil. Both benchmark indicators reached pre-epidemic highs of $ 71 and $ 67 dbp last week.

The fall in these prices derives from the increase in US crude inventories, the increase in applications for unemployment benefits in the last week in the same country and the warning given in the last hours by Italy and Germany of new confinements by a third wave.

Any decision due to the pandemic will have an effect on world demand for oil and this will have consequences on its price. That is why the last few weeks have been marked by volatility in these values. This will continue to be part of the scenario during 2021, until demand is stable and sustained.