In the world of oil trading, prices have been struggling to gain momentum as the ongoing turmoil in the Middle East has so far failed to impact the oil industry in the region. Additionally, the drop in demand due to the pandemic has added to the already existing supply glut. While hopes of a potential uptick in demand from economic reopenings have been providing some support, the progress is slow and steady. Moreover, the US stockpile data has also been contributing to the stalemate in the market.
1. Turmoil in the Middle East has not yet impacted the oil industry in the region, causing prices to struggle to gain momentum.
2. The drop in demand due to the pandemic has added to the already existing supply glut, further weighing down oil prices.
3. Hopes of a potential uptick in demand from economic reopenings are providing some support, but progress is slow and steady.
4. US stockpile data is contributing to the stalemate in the market, adding to the uncertainty surrounding oil prices.
5. Experts speculate that the ongoing unrest in the Middle East could eventually lead to supply disruptions, resulting in a rebound in oil prices.
The US had a record-high crude oil inventory of 543.4 million barrels as of May 2021.
Prices had been bogged down in early dealings as the trouble in the Middle East has yet to impact the oil industry in the region, and after U.S. crude inventories unexpectedly rose last week. However, experts speculate that the unrest might soon result in supply disruptions, leading to a rebound in prices. Additionally, the ongoing impeachment inquiry in the United States and unresolved trade tensions continue to add uncertainty to the global economic outlook, further hindering any potential price recovery in the near term.