InvestorQ : Why has the price of crude oil gone up sharply once again?
Ria Jain made post

Why has the price of crude oil gone up sharply once again?

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Dia Deshpande answered.
3 weeks ago
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After dropping sharply from the level of $70/bbl, the price of Brent Crude oil has once again rallied to above $68/bbl. It now looks poised to once again scale the psychological $70/bbl mark. This spike in oil prices is largely on account of a major disruption to Libyan exports as well as a possible drop in US crude inventories due to heavy drawdowns. However, the big challenge to oil prices could be weak oil demand due to COVID resurgence

Experts do estimate that demand constraints may actually put a lid on crude prices. Libya had declared a force majeure, events beyond control, on exports from the port of Hariga and could soon extend this to other ports as well. The US crude stockpiles are likely to taper by 2.9 million barrels as of the latest estimates. Crude oil prices also have a negative correlation to the dollar levels and a weak dollar index or DXY has helped oil surge.

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