Supply And Demand Factors Are Affecting Oil Prices

Oil prices once again rose on Monday still under pressure from rising COVID-19 cases in Europe. The possible arrival of Japanese and Indian oil reserves is raising concerns about both oversupply and lack of demand. However, the loss was later compensated. Tamas Varga, the oil analyst at London-based business PVM Oil Associates, said the prospect of a public lockdown in Europe has increased financial and oil demand-related tensions.

Fereidun Fesharaki, chairman of consultancy Facts Global Energy has said that the U.S. politicians got nervous about gasoline prices being nearly $4 a gallon.

On Monday, the exchange of the US Dollar against the Euro was reported highest in the 16-months, which made crude oil more costly for buyers with currencies other than the dollar.

U.S. investment bank Goldman Sachs made a statement that the recent fall in oil prices was “excessive” considering that the oil market stays in a deficit, adding that it emphasized its $85-per-barrel estimate for the final quarter.