They’re down because biggest cities in the worlds biggest oil importer are facing hard lockdowns, hence far reduced oil demand at current levels of production.
Its no coincidence that prices were at their lowest in decades when demand cratered across the world at the same time in the spring of 2020.
All this talk about price gouging suggests American gas retailers are setting global oil prices in a back room. There’s a world outside the US and major global developments have a price effect on a global commodity.
The real question is whether demand effect in China is sustained or short lived. If it’s the latter, prices will go up again if Opecs biggest players remain committed to production cuts.
