With COVID-19 still raging the whole world, fatal negatives have
thrust global aviation and tourism on the edge of a precipice, but lose
strengths in the face of international oil prices which keep climbing
against the trend of economics. Oil prices are free of punishment for
several reasons, for example, the weak greenback, the bullish U.S. stock
markets, the sharp cuts in production of oil-producing nations, and the
hype from time to time that vaccine is coming to market.To get more
news about https://www.wikifx.com, you can visit wikifx official website.
Although the U.S. and China have delayed the trade talks initially
set on August 15, the immediate news that China will massively purchase
crude oil from the U.S. may explains, to some degree, why oil prices has
not edged down recently. It is reported that China has planned to
import at least 20 million barrels of U.S. crude for August and
September. The record-high amount boosts the oil markets, pushing WTI
towards the highest level of $48.65 since March.
Ive shared my opinion about this U.S. presidential election in an
investment speech: Oil prices may be punished once the Democratic Party
is again in government. This is because firstly this Party tends to
achieve economic development by low oil prices; secondly, high oil
prices will benefit Russia's economy but the relation between the Party
and Russia had always been poor. One of the historic slumps in oil
happened when Democrat Obama announced sanctions against Russia in 2014,
with the prices tumbling to $26 from the high level of $107.56.
The Democratic Party will probably rejoin to the Iran nuclear
agreement once return to power, greatly easing the geopolitical tension
in the Middle East. To this end, I suppose that the triumph of the
Democratic candidate Bidden will trigger significant correction in oil
prices.
