For the first time ever, the price of oil is now negative:

https://futurism.com/the-byte/first-time-ever-price-oil-negative

Sure, they are correlated but however there is something uncertain I am not sure about!

All the expectations were going to an economic decline in 2020 and COVID-19 made it worse.

The main issue behind oil prices is simply the demand was declined due to lockdown which caused the consumption dramatically decreased while the available storage for oil products are limited and cannot absorb the surplus in such unprecedented situation. when the normal Life will back the situation will improve but slowly; I expect.

I am not sure for this uncertainity

It is directly correlated, covid19 has stopped oil consumption due to lockdown all over the world. Oil producer countries are still producing at the same rate and there are no more facilities available to stock that oil, consequently oil producers have to pay for the delivery of it instead of selling the oil (negative prices). Once lockdown finish progressively, the same will happen with oil consumption( transport and industries will reopen) and the same with the price of oil. Economic growth is related to oil consumption and oil prices. It is a matter of oil supply and demand in the global market.

ThanksMr. Vrdoljak, Mr. Mohamed, Mr. Mali and Mr. Luis

I agree with Luis Fernando Paz Lopez in the sense that the covid-19 virus played an important role in this disaster due to a huge drop in demand. Unfortunately oil producers were not smart enough to cut back production of a product they could no longer sell...this is mostly true for all countries. Then there was the price war between the Saudis and the Russians...that was the final blow to an already fragile situation....and always lurking in the background is international politics. The situation will pass eventually; but the question is how much permanent damage will be done to industry infrastructure, not to mention national economies?

Thanks Mr. Sharon i am agree with you also

The world is in a state of inertia, economies are grounded, people are fighting for survival food is the only priority now...this lead a decline in the demand for oil and further drop in price

Thanks Mr. Okolo

I think it has to do with law of demand and supply, which Covid-19 has immensely affected. Although, there are clamour towards cleaner energy away from oil. Regardless, oil still play a major role in industrialization and development around the globe. China which is one of the heavy consumers of oil took the first heat of this virus.

The transportation system also contributed its own fair quota to the decrease in demand of the commodity with most countries closing their borders and the aviation industry put into a halt.

Apart from all this factors, there is a political power play in the background with the world largest producers.

It is believed that, oil price will begin to rise as nations eases their lockdown bit by bit. However, the question remains, at what rate will that be?

Surely, the after effects of this pandemic is what some don't envisage, as social distancing and less movement might be the new norm for several years.

All in all, I think the future of oil might not be as bright as we think. This is a reality that needs to be put into consideration especially in a country like Nigeria who solely depends on oil revenue for survival..

Thanks Mr. Kafisanwo

The oil market tends to go lower when 1 marginal barrel of crude oil supply surpasses demand. In this case, it was several million marginal barrels of oil production too many. Hence the drop. The recovery of oil price will also depend on how many airlines will still be able to fly after deconfinement.

Thanks Mr. Werner for your reply

وذلك لقلة الطلب على النفط بسبب جائحة كورونا وتوقف اغلب المصانع والسيارات والنقل البري والجوي وإغلاق الحدود بين الدول

Sure, the price is declined cause almost of factories and transportations are stopped, almost people have Quarantine in their home so, they didn't need to produce more oil and gas

Thanks Mrs. Enas and thanks also to Mrs. Samar Saied for your sharing

Hello Amer

There is a direct correlation with COVID-19 because almost all the countries are on lockdown at the moment , so demand has dropped therefore oil prices dropped.

Thanks Mr. Omietimi for your reply

COVID -19 has affected all aspects life including oil and gas industry. But I believe, for oil sector, there is another important factor related to internal fights between OPEC countries and global demand of oil and policy of USA and interests of Russia and sure dragging Saudi Arabia as big producer outside America content.

In Addition.

Although, crude oil still significantly drive the global energy demands. It is evident that the universe is tilting towards cleaner energy like Wind, Solar, Nuclear, Bio-fuels, among other technologies, even though they are fully developed and widely utilised.

It is important to understand that the transition from STONE AGE to IRON AGE did not require the dwindling in availability of stones. Therefore, it is only proactive for us to say that we do not have exhaust the global crude oil reserve before we can transform to other cleaner energy development.

In fact, this shift might occur sooner than predicted and the global pandemic has further buttressed this point.

Regards.