The Correlation Between Covid-19 and The Surge In Cost of Petroleum Products
DOI:
https://doi.org/10.58445/rars.2378Keywords:
Petroleum, Covid-19, Petroleum ProductsAbstract
This paper aims to dive deeper into the causes for the petroleum product price spikes and drops before and after the COVID-19 pandemic by examining OPEC (Organization of the Petroleum Exporting Countries) policies and the long-term impact OPEC decisions have on the petroleum economy. The COVID-19 lockdown restricted millions of people to their homes, resulting in a decreased need for gasoline. Eventually, this led to a decrease in demand for the product, therefore leading to an oversupply of petroleum. With the decline in demand, oil exporters were subject to decreasing their supply of petroleum. Once the lockdown was lifted, petroleum demand suddenly increased, but oil exporters couldn't meet the demand. Despite the limited supply, the gasoline demand surged. This eventually led to a spike in the price of petroleum products worldwide. These extreme price fluctuations signify OPEC’s role in shaping the global petroleum market, as well as the economic stability of many nations.
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