Crude Oil gets a price hike despite lockdown restrictions
Crude Oil gets a price rise despite lockdown restrictions in various countries. India’s demand for crude oil has seen a rise this month particularly as lockdown restrictions got relaxed. But in countries like Malaysia, Indonesia, Singapore, etc, oil demands have fallen due to restrictions.
A theory that supports the rise in prices is the start of the summer season in the US. Summers are considered a season for comparatively higher oil demands. This is because, during summer vacations, people drive more for weekend outings and trips. Also as the covid cases drops, and more people get fully vaccinated, travelling would gain high momentum. Work from home, for instance, will become unpreferable among most employers in such cases. Hence the prices will automatically see a surge.
“Low investment is going to exacerbate supply and demand tightness as the economies pick back up again, and then in time we’ll see supply pick up and rebalance,” Exxon Mobil Corp. CEO Darren Woods said in a forum.