Crude Oil Prices Remain Strong with Increasing Demand

Compared to Black April, April 2020 which is seen as one of the worst months in global Crude Oil markets, 2021 is a different story. There is improvement in fundamentals and a newfound bullishness returning to the markets. Brent closed at $66.77 in the last week which was up by 5.72%, while the WTI closed at $63.13. The prices have continuously been supported by multiple factors including a weaker dollar, improved economic growth forecast from the IMP, and so on.

With the impact of the recent economic stimulus, the IMF has doubled its global growth forecast in 2021 to 6% including the 6.4% predicted growth in the United States. The Chinese economy grew by 18.3% through the low base. In March, the Chinese exports have been strong at 30.6% higher compared to their last year’s level.

Despite the slow growth pace in March compared to February. This is combined to improve the manufacturing index data, 5.19 in March. The bond rates of the US are also increasing even after improving job data. It is an indication of fears of changing the Fed policy on interest rates that may have been hiked to control the expected inflation.

The Crude Oil  prices are affected by emerging fears of inflation that can be seen through the rising bond prices. Despite the lockdown measures in the EU, Google mobility data shows that the number of visits to retail and entertainment venues has increased. This suggests the fuel demand may not be as bad as it was previously thought to be.