A whole lot of factors have been playing against crude and protracted demand continue to be one of the key concerns. What would you say looking at the kind of fall that we are seeing overnight?
The rout in crude might not yet be done. Whatever expectations one has for the overall global financial markets direction can very much be applied to crude as well. The whole risk-off trade and the selloff that is happening in the financial markets is being reflected in crude and the two will remain converged for the time being.
On the vaccine front there has been a major blow overnight as AstraZeneca had to pause its vaccine trials because of some issues with one of the recipients.
So overall, the optimism that we have seen in the financial markets in the past several weeks over slow and steady recovery helped by vaccines, helped by stimulus has faded very, very quickly and that extends to oil demand as well. Any expectations of oil demand recovery are tied at the hip with the expectations of global economic growth.