The price of oil fell at the beginning of this week. It seems like the economy's recovery was not going as smoothly as we expected. The slow global growth may overweight the even tightened supply of oil.
The price of oil is still at a record high level; however, small drops in price are showing up. The vaccine has undoubtedly calmed down the pandemic, but the unequal access to vaccines threatens the global economic recovery; not to mention the covid-19 situation is still getting worse in Indian.
"Traders are now refocusing on the spread of the COVID-19 pandemic and global concerns over the new variants' expansion," Rystad Energy analyst Louise Dickson said.
OPEC+ canceled talks last week about output, which included pumping more oil from August, after a dispute between Saudi Arabia and the United Arab Emirates.
Oil stockpiles in the biggest crude producing nation continued to tighten, the US inventories fell to the lowest since early 2020. Since OPEC and the allies started to consider the slow growth of the economy could cause more problems, the oil price may continue to fall.
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