Oil Facing Dramatic Changes in Pricing Amid Economic Meltdown
March 24, 2020
In case you haven’t noticed, the current market crash that is taking place across the globe is pretty intense. Some of the world's largest companies have shed billions, while there have been trillions of economic boosts made in a bid to try and calm the market down a touch.
However, if the current price of oil is anything to go by, then the investments being made are a drop in the ocean.
Recently, as much as $1.5tn was put into the markets in a bid to try and stem the flow. That stimulus has done little to prevent the shredding that is happening on the market, though.
Even some of the most powerful commodities in the world, including oil, are going through a massive plunge in price. Indeed, last week we saw oil falling by as much as 24% in a single day.
These figures continue to rise and fall, with massive state-backed support for private enterprise leading to minor market changes. Other factors, such as increasing numbers of infected and deaths, are having a spiraling impact on the economy as a whole.
However, it’s expected that some of the biggest oil suppliers might buckle down in a bid to try and ride out what looks to be extremely shaky ground economically.
Everything is Down and Very Little is Up
With the decline expected to continue in all forms of oil, expect just about every marketplace indicator to show that the worst is yet to come.
With COVID-19 now tragically beginning to ramp up across the USA and Europe, the majority of the world's most developed nations are under siege from a virus they struggle to contain never mind defeat.
As such, almost every industry is going through a period of complete reset and reformation.
Oil, once seen as one of the most precious commodities on earth, is worth a lot less than it was even a month ago. While that might make some speculators utilize their backing to try and get in on the oil industry, it’s likely that this is just part of a global trend that is taking place.
It’s hard to see where that changes and stops, though, with the oil industry facing one of the most dramatic shutdowns we’re likely to see this side of the decade.
If it gets any worse, 2008 really is going to start to look like a dot on the graph compared to the mega-collapse we could see coming globally.