The impact of COVID-19 on oil prices

摘要

It is evident that the measures to prevent a further spreading of COVID-19 have a major impact on the global economy. As a result, also the global demand for oil fell off a cliff. Market expectations range from a demand drop of 20 to 30 million barrels per day (mb/d) in April. And even if the measures such as the lockdowns or the partial lockdowns will get looser during the coming months, it is an illusion to think that global oil demand will recover to 'normal' levels any time soon. To balance the well oversupplied market and to support the energy sector in its broadest sense, US president Trump has asked Russia and Saudi-Arabia to cut oil production and safe the oil industry.