Global oil prices surged by more than 1 percent indicating a positive change in the petroleum world but investors still worry as Covid-19 continues to impact the global economy. The Organisation of the Petroleum Exporting Countries (Opec) seeks to lift supply cuts.
John Kilduff, partner at Again Capital LLC in New York, told the media, “The industrial sector is picking back up and that portends well for demand going forward.”
It is reported that the new price of Brent is $44.15 a barrel, an increase by 1.5 percent. Furthermore, the prices of crude oil was placed at $41.01 a barrel, indicating a price increase of 1.8 percent. In the US, despite a spike in fresh Covid-19 infections, manufacturing activities surged in July, nearly after six months of economic shutdown.
Similarly, manufacturing activities also resumed in Europe in July after six months, while few oil suppliers in Asia have prospered in business in July.
Lipow Oil Associates told the media that, as Opec reduces their production cuts, oil inventories around the world will continue to decline.
In regard to oversupply, Opec members and its allies have decided to ease oil cuts while the US shale productions surges.
Investors continue to reconsider the obligations about economic recovery as Covid-19 has surged in many countries including India. Many countries are imposing new regulations to contain the spread of the infection.