Another major effect of the Corona pandemic is now in front of us with the extraordinary collapse in the price of oil in US. It has dropped below 1 dollar barrel for the first time in history. It “nearly” went negative. So how did this all happen?
Oil consumption has reduced drastically due to the lockdown amidst Corona virus. On the other hand, oil mining is a difficult process which cannot be stopped immediately. Oil drilling companies are finding it extremely difficult to stop the wells.
Oil drillers are storing it in as many methods possible. Despite this, storage capacity is almost over. Storage is causing more than the oil itself now.
Is a similar effect awaited for the rest of the world? The crisis of corona virus is creating ripple effects at various fronts.The situation at several fronts can be controlled only when we fight the pandemic in a structured manner. Individuals require isolation but our efforts to fight against corona requires solidarity across borders at the global level. World needs cooperation, not competition.
Damni Kain
