After assessing the effect of the pandemic on the pricing of fuel, the Organisation of Petroleum Exporting Countries (OPEC) has determined that the only feasible hope at the moment is an increase in China’s demand for oil.
China’s oil usage has gradually gone up after the pandemic and it is expected that it would continue into the next year. However, Mohammed Barkindo, the Secretary-General of OPEC, noted that “the latest oil demand information for the other Asian region, which includes India but excludes China, points to the downside.”
He went on to state that, “Furthermore, the extent to which economies recover will be the major determinant of whether oil demand returns to the growth track next year. The speed with which fiscal stimulus measures filters through to end-users’ pockets — and the time it takes for this to translate into petroleum product demand — will be critical for the market outlook.”
Earlier in the week, Light Crude sold for 38.98 dollars per barrel, Oil for 40 dollars while Brent Crude went for 39.61 dollars.
