By Bhavik Patel
Poor run of crude oil continues as it gets battered by negative news. Crude has been one of the worst performing asset classes among all other major asset classes, namely equities, commodities and bonds. Only cryptocurrencies have after crude performed poorly due to FTX bankruptcy. A major factor for crude decline was rise in Covid cases in China, as the country reportedly asked the Saudis to ship less crude in December. China coming back was very much part and parcel of the recent upswing in prices, which is why we saw prices rise from 6800 to 7400, but once again drifted lower after China enforced more lockdown due to rise in cases.
(Bhavik Patel is a commodity and currency analyst at Tradebull Securities. Views expressed are the author’s own. Please consult your financial advisor before investing.)
