Known as the driver of everything, as economists and industrialists say, oil is one of the most important products in the world. It is often referred to as “black gold”, and lately, is growing in demand.

Certainly, oil is an unavoidable product that is best known as a derivative from which fuel, kerosene and plastic are made. It has widespread use and a limited supply. Thus, it has a high impact on the prices of various goods and services.

How did the Covid-19 Crisis Affect Oil?

Oil had a very turbulent period from the beginning of the coronavirus pandemic up until now.

The price of “black gold” has experienced unprecedented market fluctuations in the past year.

As a reminder, the price of oil before the pandemic was $66 per barrel and went towards an acceptable price (for producers) of $80, while during April last year it reached its historical low of $6.5 per barrel

Oil has been growing steadily since the beginning of the year, largely due to a final agreement reached at OPEC Plus meetings

The agreement was reached on the reduction of oil production. First, it was agreed that reduction should be 10 million barrels per day, then 8 million per day and finally (the last agreement) an additional million barrels less from Saudi Arabia, otherwise the largest producer of the highest quality oil in the world.

Reducing production restrictions gives indications of increasing consumption of this energy source.

Mass vaccination and increased movement of people and goods around the world bring optimism to industrialists and push the price towards an upward trend.

The once overfilled tanks of pumped oil in the last 4 weeks show a decrease in pile stocks, which directly affects the price of this energy source.

For the last 4 weeks, the price has reacted with an increase of about $6 per barrel, as you can see from our infographic.