Brent remains elevated above the US$ 80 level and looks exceptionally well supported at the current levels. Oil was not that important for almost two years in the general scheme of things. But suddenly it has become a matter that calls for the maximum attention. This has many reasons. The first and foremost is the demand for fuel that has emerged after the pandemic as reopening of economies is on its way. Travel and transport, heating devices, and the revival of demand from across the world especially India and China have all contributed to this situation. The control of supply, and thereby the demand by OPEC+, also contributed to tightness, something which has been very rarely witnessed in the recent past. For the major economies including the US, who are pledged to focus their attention more on renewable energy and to gradually ease out the fossil fuel, the reviving accent of traditional fuel may not be appreciated by major sections of the population though it still remains the main domain for energy needs. This conflict is affecting many developed nations as the efforts to develop non-conventional and renewable energy sources may take many more years to fructify. The OPEC+ is expected to increase the supply by 400,000 barrels per day from the middle of November. The Strategic Petroleum Reserves has not been released by the US government as yet, though some say the release may coincide with still higher prices. The winter season is the time when fuel demand peaks, not only for transport during holidays but also for heating devices, and this may be reason enough for prices to test higher levels. While many forecast put the target levels anywhere from US$ 90 to US$ 100, the trigger for a major flare up in prices does not exist at this time. But the principal factor is that countries like India who have huge import bills, may find the situation difficult due to the soaring prices and a relatively weaker local currency.
