Sentiment, Hope And Headlines Driving Oil Price Exuberance. Here's The Reality
Ellen Wald, PhD | May 21, 2020 19:03
“Exuberance” is now the word of the week in oil market news. According to the shows that traffic congestion in Beijing is higher than usual, which could be due to a greater number of cars on the road as people opt to drive rather than utilize public transportation.
It’s possible that we will see this trend in other heavily influenced by sentiment (fueled in large part by news headlines). There seems to be a growing sentiment this week that things are getting better as economies open, but that's this week.
Movement and business in many major cities are still locked down and air travel remains seriously depressed, even in regions where there are no longer restrictions. We do not know how fear of a virus will impact economic activity after the remaining lockdowns end. In addition, the decline in global GDP will weigh heavily on oil demand even when travel and commercial restrictions are lifted. As a result, there are still too many unknowns about the future of demand.
Get The App
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.