World’s Economy and Oil Prices in Times of Pandemic

The WTI or West Texas Intermediate crude reported negative for the very first time in history for oil traders were stuck between humongous oversupply and the lack of storage to put it. Because of this, the global prices for crude remain at the bottom per barrel.

Basically, there are numerous oil producers that are having a hard time shutting down their units or finding alternatives that are environmentally acceptable to put on their waste. Sea tankers find it hard as well in offloading and currently trying to readjust routes on their hunt for takers. Thing is, this isn’t going to be an easy fix for Covid-19 pandemic has shut down the demand for oil all over the globe.

WTI is currently trading at 17 dollars while Brent equivalent is at 25 dollars. Still, this is a level in which global oil is failing to make good profits. WTI as well as Brent are the two primary grades of oil that are being used in benchmarking prices worldwide with Brent found offshore and being a bit of better quality compared to its onshore counterpart.

Soon enough, more tolerable prices might return if, the oversupply started to level off and global demand rises after restrictions on lockdown are relaxed. Question is, what would be the long term prospects for oil prices and how they’ve been impacted by Covid-19?

Energy Prices

The future of oil prices is typically cheaper than the current or the spot price. Meaning to say, those who are okay to underpin the future of oil production with the early orders normally get discount. The crossover of future and spot prices is otherwise known as short-term glut or contango. Basically, this isn’t the first contango that ever happened in history of energy trading. Electricity markets have a period of over generation in which the producers are paying consumers to take power that will damage the generating station.

Without a doubt, this world event is becoming a lot more common due to how the world transition from the different kinds of energy that could be stored like oil and those that cannot similar to solar power and wind power. We are now seeing how these events unfold in all parts of the world.

It will Recover

In this modern time, the cause of oil contango is the fact that investors are thinking that the prices will start to improve in the long run as soon as the economy recover. Basically, if you are trading and using resources from, this can be very helpful in forecasting where the trend will go.

Former President’s Say On Trump’s Corona Crisis Management

Former US President Barack Obama criticized his successor Donald Trump’s corona crisis management. President Obama said in a conference call with government officials that Trump’s response to the epidemic was “a catastrophe of absolute confusion.” News website Yahoo News recorded on Friday.

Covid-19: What Barack Obama said on Donald Trump’s Handling of Crisis in the US

President Obama chose the trump era ideology and built a bridge to the current crisis. “What we’re fighting is a long-term trend associated with selfish attitudes, divisions, and perceptions of others about the enemy. This has been a strong motivation for American life. But we have experienced internationally,” said Obama. : “This is why the response to this global crisis is weak and inconsistent.”

The former president admitted that even the best government seems bad in the current situation. “This attitude” suddenly appeared to me, and “let’s go to hell with others” was clearly a confusing disaster. Attitude has become the business philosophy of our government.