Oil Price War and COVID-19
Invisible war and oil price war – Equilibrium at peril
COVID-19 or the coronavirus, is a recently discovered infectious disease that has resulted in a global mobilization against its spread through stringent government mandates such as enforced community quarantines, social distancing, and limited use of services and utilities.
Despite the sound validity for the implementation of these laws, their effects on the economy, businesses, utilities, and industries have been detrimental and disadvantageous to say the least. In more ways than won, the coronavirus has also given way for great uncertainty about oil demand.
Importance of Oil Price Stability
Now, oil has been an integral industry and commodity in the world. Admittedly, there are so many different industries who depend on the products and services created by the oil industry. Truly, it is a shame to see the rise and fall of each industry due to the effect of COVID-19 to the oil industry.
Lower Oil Price Means Good or Bad?
One of those effects for oil is the infrequent rise and fall of oil demand in the world. Lower prices are good for countries importing oil and bad for countries in the business of oil importation.
But such is the nature of economics and business as a whole––infrequent and ever changing.These risks and rewards and flying through the air and only the experienced entrepreneurs and experts in the field will be able to tell which risks must be taken and which risks must be avoided.
COVID-19 and Oil Price
That having been said, in affecting the entire supply chain of the petroleum industry, the coronavirus has set off a series of chain reactions that have been affecting all other industries, mainly those that depend on the oil industry’s gains and services. However, due to the emergence of COVID-19 fighting technologies and medicine, who could know for sure when this unprecedented economic turmoil will ease and give way to normalcy once again.
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