InvestorQ : Why has the price of crude appear to have topped out around $70/bbl?
diksha shah made post

Why has the price of crude appear to have topped out around $70/bbl?

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Dilmini Mercia answered.
3 weeks ago
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If you go by the trends in the last few days, it does look like Brent Crude may have topped out for now at $70/bbl, although you can say anything with certainty. One reason, oil prices are not shooting up further is COVID resurgence. COVID 2.0 may not have hit the US and Europe but India and Japan are hit; and they are two major net importers. Even if Asia is able to get to grips with COVID, demand recovery may still be a few months away.

Another important reason for oil to peak out is the likely Iran Nuclear deal. For long, Iran has been the X-factor in global oil calculations. Now a nuclear deal with Iran looks likely and Iran may again be admitted to sell oil in the open market. Iran is one of OPEC’s largest producers of oil and could make a big difference to global oil prices. Iran story will also force the OPEC plus Russia combination to go a little easy on oil supply cuts as efficacy is reduced.

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