07.05.2021
Market commentary on heating oil 07.05.2021
The economic development in the world's largest trading regions – especially in the USA and China, but increasingly also in Europe – is giving stock market investors reason for cautious optimism.
In the USA, a fairly swift return to more regular conditions is expected in the air travel sector, which would of course also bring with it an increase in demand for kerosene. Accordingly, oil prices have remained stable over the past few days. At the same time, however, OPEC and Russia seem to have little interest in significantly higher prices, since this would allow the U.S. shale oil industry to become profitable again and push its way back into the market. And in fact, there are also bearish factors: firstly, the increasingly dramatic COVID-19 situation in India, where the situation seems to be spiraling completely out of control, and secondly, the developments surrounding the nuclear deal with Iran. The Biden administration is making considerable efforts to defuse the conflict with the mullahs in the Persian Gulf; logically, a lifting of sanctions would result in a significant increase in the amount of crude oil available on the world market.