Both a barrel of Brent and WTI oil are already trading for more than sixty dollars. The price of black gold has long since exceeded the pre-crisis level. There has been a temporary shortage of oil on the market due to the extremely cold weather in important mining areas.
The frost is estimated to reduce U.S. oil production by 500,000 to 1.2 million barrels per day. Cold weather has also reduced the volume of oil processed by some of America’s largest refineries by up to three million barrels a day. This means that the price of oil may rise in the coming weeks.
Due to the turbulent situation in Yemen, there are also concerns about Brent oil supplies from the Middle East. The supply of black gold on the market should increase only with the arrival of spring when the countries of the OPEC + group should agree to increase the volume of mining. However, miners are still wary of the development of a coronavirus pandemic. This has a major impact on the demand for oil, and therefore its price.
If the pandemic subsides, anti-epidemic measures are most likely to begin to ease. This could lead to a more significant resumption of air traffic, which is a significant factor influencing oil demand.
