OIL MARKET UNDER THE SHADOW OF CORONAVIRUS (COVID-19)

Abstract

The transmittable disease Novel Coronavirus (COVID-19) was believed to mainly limit to China, when
the first case erupted in the Wuhan city located in Hubei, china nearby the completion of December 2019.
But in a bit of time, it splits over in all countries and has now become the global disease so far; and it is
considered as a larger as compared to any other epidemic in the past. The main focus of this study is to
see the impact on the global oil market caused by a coronavirus. The pandemic has brought not only a
real fear of losing lives, but has pushed world economies towards a historic economic recession. The
pandemic has been proved a terrible game changer for all oil nations around the globe and U.S
particularly. Oil under the shadow of coronavirus: all American top oil companies along Shale has
busted alike, non-else in global oil market expected to close 300,000 barrels per day (BPD) of oil for May
and June, 2020. A fall in global oil use (demand) will bear the cut by 350,000 barrels a day during the
year, 2020. The oil market is about to face an unexpected situation of storage capacity in wells and
decline in the demand growth rate much bigger than the supply growth rate, which also caused a fall in
crude oil prices globally. We accept as true that the corona virus will rigorously harm the oil industry in
the short run. In the long run it depends on the life of coronavirus. The conclusion of the study reveals
that it may cost $48 trillion in future for the next two decades to retain with growing energy demand
worldwide.