The oil market is always volatile, and this is a fascinating part that attracts a lot of traders to scramble for the price line. As we know, the price of Oil is motivated by both demand and supply and the overall economic situation. In 2020, the price of oil crashed down due to the worldwide pandemic, the COVID-19. This pandemic did not just harm the oil market, but also the whole economic system. So, in this horrible situation, OPEC agreed to stabilize the price by cutting production, dropping it to a 20-year low.
Although the pandemic has not yet ended, we are definitely in a better place than 12 months ago. According to OPEC and the IEA (International Energy Agency), their forecast of oil demand is bullish in the year 2021. As the vaccine rolls out in different countries, people have started to fight against COVID-19. Seeing all the latest news, we can be even more confident. The Retail Sales m/m in England shows a rising figure, also, in Australia, the Retail Sales reported was higher than expected. The economy is recovering, let’s give the oil market some time to recover.
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