Oil Selloff Has Seen New Highs Under Covid Fears

Oil Prices
Oil Prices

The oil market has seen quite a few highs and lows in the last year, with it moving from booming to busting- as inflation-weary Americans sigh in relief. This comes in time, as American drivers have been getting ready for the Thanksgiving holidays. The US Crude reserves went down to a new seven-week low on Friday, which put up a price of $76.10 for every barrel.

This slide is quite good news for most of the drivers that have been hurt by the seven-year high prices of gasoline- a major fix that has made the consumers quite upset about the whole American economy.

Tom Kloza, the President of the OPIS, recently informed CNN that they would be seeing some relief on the price of oil at the pump. He further spoke about how the relief would be quite light- compared to the plunges that were seen recently. After a splendid rise, the average gas price at the national level has finally cooled off at a price of $3.41 a gallon- as reported by the AAA. Kloza believes that the peaks of this year have already been established- with nothing higher to come by.

Lockdown Jitters Have Affected Oil Prices

One of the major catalysts for the major tumble in the price of oil on Friday is another major development on the Covid front: Austria recently announced its plans of imposing a complete lockdown- the first in Europe- in order to reverse the spike in the cases of Copd-19.  

The lockdown has been raising quite a few fears in the entire market of petroleum and gasoline regarding tough new health restrictions elsewhere that could potentially slow down the economic comeback while eating into the demand for energy. 

Apart from the fear of lockdown, the oil markets have also been pretty jittery over the shadow of China and the United States of America coming together to intervene in the inflamed energy markets.