Now: Crude Oil Price Still Unstable
The current price of crude oil keeps jumping and up and down as there so many unstable elements in the markets that affect the supply and demand for the crude oil. Overall, the tendency for the price is looking more toward upward as so many geopolitical issues that may raise the price further.
For example, if we look last week into the market, the price soar as the announcement from the Energy Information Administration (EIA) state that there a short of 0.5 million barrels of crude oil compared to the previous week. One of the reasons for the situation is that currently it is the beginning of the driving seasons for the US.
The price jumped again on Friday after statement released by Iran’s military units said that they have seized 2 Greek oil tankers in the Persian Gulf because of “violations” on the certain rules. This has cause disruption on the supply chain as the route represent almost 30% of the world’s trade.
The Euro Zone on the other hand still tries to negotiate a sanction package in which the Russian Oil ban is one of the articles in the negotiation. Overall, the negotiation still didn’t result in any positive outcome for the Euro thus the shortage of oil may as well continue.
30 May 2022