Oil holding its head high despite weak demand

Oil holding its head high despite weak demand

Jaya Maheshwari
06 Nov 2019 06:11 PM
UK oil price moved from a low of 56.15 on Oct 3rd – a level last seen in early August, to a high of 63.17 due to slowing global cues; cues not just from the largest economy US, but also from China. Further the pressure from climate activists is mounting, calling for alternate cleaner fuels. The weekly rig count in US also showed a 10th fall in the last 11 weeks, even though the production since Jan 1 has increased from 11.7 million barrel per day (mbpd) to 12.6 mbpd for 4th straight weekly growth. Growth in production is one side of story and consumption or demand is another. The OPEC sees a drastic drop in oil demand due to above factors.

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