Global bull-run in fossil fuels may be peaking out for now, glut seen ahead

Prospects of lower global economic growth amid fresh Covid wave and reduction in bond buying by US Fed weighing on sentiment

The global bull-run in fossil fuels like crude and gas may be peaking out due to several adverse factors. Analysts are downgrading global economic growth prospects due to the fresh wave of Covid infections across Europe and Central Asia.

The USD has strengthened, and may rise further. The US Federal Reserve has started to taper and it may accelerate its tapering schedule. A strong dollar is inversely correlated to commodity prices, which are dollar-denominated. In addition, the US President has been persuading nations with large oil stockpiles to release some of their inventories, which could result in increased supply.

Europe