According to new Oil Market Report (March 2020) by IEA expected reduced demand for oil (first time in 11 years). This is a result of wide spread of corona virus (Covid-19). For second consecutive year global refining expected to decline because global demand for fuels reduced (also result of corona virus).
Global demand for oil may be back to normal when hysteria about the virus will be reduced. Brent oil prices dropped to $32 per barrel on March 9, 2020. Also Russia denied to participate in further oil output production cut that was proposed by OPEC. This created the perfect condition for oil prices to fall drastically.
Global health crisis show the biggest impact of unpredictable situation. It’s obvious that global GDP growth will slow down and as a consequence oil demand too. High uncertainty regarding corona virus outbreak may cause oil prices below $30 per barrel. This is win situation for oil depending counties like India, Europe.
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