The impact of COVID-19 on the collapse of oil prices

Coronavirus disease (COVID-19) is an infectious disease caused by a newly discovered coronavirus. People from different ages can be infected by this virus.

This pandemic has affected the oil and the global economy around the world, as an example in US oil prices were on track for their worst day on record in the last few days, with crude storage facilities filling rapidly as the coronavirus pandemic continues to crush in demand.

Without a doubt, the psychological state created by the U.S. crude prices collapse has overshadowed on the financial markets, and reinforced expectations for the continuity of oil prices crash. The main issue is how the global economy can be saved from the setbacks of oil and other commodities and how we can stimulate economic activity and getting out of the Corona crisis. as a result, the question is:

What is the effect of this collapse on the consumer in U.S.?

The impact of the collapse in oil prices on consumers in U.S. differs from that in the rest of the world, in United states of America they have a free market, and these countries are ruled by supply and demand, this is why it can be affected by prices reduction for fuel and energy in general, and that’s what happened since the beginning of 2020.

This current situation will continue and the reduction in prices will go on until at least the end of 2020, and the economic activities in general will continue in its Suffering from stagnation. Besides, the negative effects of the collapse of oil prices there must be a positive impact of it?

In fact, the positive thing for governments and individuals decreasing the electricity consumption bills in countries that depends on oil power generation, also, stopping the work of factories around the world assists the environment to heal from the negative effects of the factories’ pollution.

finally, the latest novelties of the current pandemic shows that finding a cure and inoculation for the COVID-19 needs at least six months or more and this will lead to increasing the crashing of the oil prices in disastrous way.