Apart from knowing what’s going on in everyone’s life, commenting and talking about oil prices is a favorite sport for many. Interestingly, almost all social classes are quite keen to know about the daily rise and fall in oil and gold prices as their work is often directly or indirectly impacted by it. Even a student might worry about oil prices as it reflects in their transportation expenses.
For many years, oil prices were on an upward trajectory with minor changes. However, suddenly, the entire world was walloped by a deadly pandemic that caused everything to go upside down. But who would have though the impact of COVID-19 would be so harsh that oil prices would go negative.
It came as a massive shock for economists, politicians, and even the general public as this has never happened before. Even the Great Depression did not bring such a surprise for the world.
In these times, the demand for oil plummeted to the extent that oil traders no longer have any idea how to store excess oil. Although oil companies have been making endless efforts to curb the demand and find adequate storage, it is a rough time for them.
No one has anything to learn from history regarding this situation because this has never happened before! Oil refineries are also rejecting barrels of oil adding to the storage problem from oil manufacturers.
When will the situation get any better? No one knows! The world is dealing with a new virus. Huge corporations, politicians, and everyone else is in a race to find a solution to it and bring everything back to normal.
The recovery of this situation depends upon when normal transportation resumes to what it previously was, but this is only going to happen when the transmission of the Coronavirus lowers and people feel the need to buy oil for their transportation and business needs.
However, this situation favors the general public, tired of refilling their vehicle’s tanks every second day, at huge expense. The pandemic may have brought unlimited issues, but it really has controlled oil consumption, and consequently air pollution has also lowered in most major cities.