Market Focused on Vaccine Administration
May 4, 2021
The market continues to focus on more vaccines getting administered and more states easing lockdown restrictions fueling the optimism of a strong economic recovery and strong energy demand. This outlook continue to push energy prices higher. A weak US dollar that continues to be soft is also supporting higher commodity prices in general. The market looks at the US and China and sees the strong demand there being more than the potential lost demand from India.
Bank of America Global Research said an increase in demand anticipated across OECD countries should allow prices to increase this summer. However, a full recovery will require a healthy economic backdrop in emerging markets. A seasonal demand increase in the third quarter will be compounded by the reopening of the US and Europe, while increased car sales and reduced use of public transportation could extend the cyclical oil demand recovery.