Crude Oil Price Volatility is Reverting Slowly to Pre- COVID-19 Levels

A robust way to start the week after progress on oil’s demand recovery was aggregate positive last week with across the board falls in the US inventory reports.

For crude oil traders, it’s been a bumpy trading session for oil, as crude oil prices kept swinging up and down, concerns about global energy demand resurfaced on the face of new lockdowns restrictions around major economic hubs.

However crude oil prices eventually started to move upward jumping to a five-month high, as crude oil traders kept their long positions relatively.

In addition, it seems crude oil price volatility is reverting to pre- COVID-19 levels. Energy traders have been tracking global equities especially the America and Asia equity markets, which revealed optimism about the global economic recovery in general.

So this crucial macro stated above is playing out favorably at the energy market as traders remain bullish in the mid-term, speculating that strong demand for crude oil is coming pretty soon.

Also, Crude oil Bulls were bolstered by liquidity injections from the second-largest economy (China), helping to boost demand for energy, especially in the construction sector, which required a high amount of fuel to power their heavy equipment.

On the supply side, OPEC+ scheduled meeting for tomorrow is expected to be tabled on the metrics around compliance after crude output cuts were eased at the start of this month.