The crude oil price is at a seven-year high and it’s a fourth straight week of gain.
The inventories have continued to decline for the seventh straight week and the US inventories now stand at 2018 lows and that’s one of the reasons run-up is seen in prices. So while the demand is steady, and the COVID-19 cases seems to be coming off, the supply disruptions is something that the markets are keeping an eye on whether it's an Organisation of the Petroleum Exporting Countries (OPEC) and members, including Libya and Kazakhstan.
Vitol - the biggest energy trader in the world also said that the prices could continue to go higher due to tight supplies, and it's not just crude prices but product prices like heating oil, gasoline gas - all of these commodity prices also are trading at a multi-month high.
The markets believe that with the kind of OPEC compliance and stronger demand, crude prices could continue to rise further in the first quarter of the year.
Watch the accompanying video of CNBC-TV18’s Manisha Gupta for more details.