The prices in global crude prices have shown signs of improvement according to the latest results. Crude rates and demand have pummeled as activities in most countries remain limited due to the COVID-19 pandemic.
Crude prices soar, despite lockdowns
The prices of oil have increased having been negatively impacted by the COVID-19 pandemic in 2020. Though the demand for crude is still not at pre-pandemic levels, there is improved optimism that these oil volumes will increase very soon.
The rates of crude oil are usually seen as a measurement for economic activities still battling with coronavirus. The latest figures show that crude oil has reached $59 a barrel, rising more than 55% in a few months. The Brent Crude which is an important benchmark for oil globally has seen positive growth in recent times.
Contracts that are planned based on oil prices have been '' jacked-up'' since December. Moreover, the Western Texas Intermediate (WTI), a benchmark for American crude, had last week improved above $56 a barrel, which is the first of its kind in 11 months.
Vaccines development among factors
''The factors for this rise in crude could be because of future expectations for economic healing amidst the development of vaccines. This has given much hope that coronavirus may soon cease to exist. '' Van Hari, Creator Vanda insights opined.
The oil demand has been good in many nations especially in Asia. '' China forecast ha has shown promises about oil exports, and we are glad for the results '' Shell executive Ben Van Beurden said. Some other indices that may have contributed to this surge are efforts by OPEC nations especially Saudi Arabia to reduce its production.
The COVID-19 pandemic has been a major problem for nations in the OPEC block who mainly depend on oil. The impact of several lockdowns and restrictions has made many oil-producing nations look for other sources to generate revenue, with many resorting to loans.