Iraq bitumen price
Iraq bitumen price depends on many factors in each period. Generally speaking, oil and other bitumen grades prices are dependents on some variables. However, the coronavirus pandemic has altered many aspects of global fields. In
the following, we will explore the coronavirus effects on the
Iraq bitumen price, Middle East bitumen and oil prices.
What has Corona done to the world economy?
As the reports show, the global corona epidemic has infected people in
188 countries. In the following, we will see the economic impact of the
virus on the world economy in various ways:
Stock market and the Iraq bitumen price
As the number of Covidien increases, all major stock markets around the
world, including Dow Jones, Futsi and Nikki, have seen a sharp decline. In other words, shares of Dow Jones and Futsi fell the most in the first three
months of 2020 since 1987. In response to this sharp decline,
central banks in many countries have cut bank interest rates. Generally,
global markets are better off with government intervention, but some
analysts say markets are still fragile due to fears of a second wave of the virus. According to the International Monetary Fund, the US unemployment
rate has risen to 4.10 percent. This situation shows that the period of
growth and expansion of one of the largest economies in the world is over.
Besides, they provide the way information varies from country to country,
with France, Germany and Italy, for example, publishing job application
statistics, but the UK announces the number of people who have registered
for government assistance. Of course, there are now signs of an
improvement in the world labor market. According to LinkedIn, in China
and France, with the lifting of restrictions imposed due to the corona,
the employment rate has now increased. Some experts have warned
that it may take years for the employment situation to return to
pre-epidemic levels.
The risk of recession and the Iraq bitumen price
As a matter of fact, the International Monetary Fund has announced
that the world economy has shrunk by 3% this year. According to the agency,
the current recession is the worst since the “Great Depression” of 1930. Moreover, the International Monetary Fund has said the current crisis is
“unlike any other” but expects global growth to reach 8.5 percent next
year, provided the virus outbreak declines in the second half of 2020.
Tourism-related industries
Roughly speaking, they have hit hard the tourism industry and related services. Airlines cut flights and customers canceled vacations and business
trips, respectively. Many countries also imposed travel restrictions to curb
the spread of the virus. However, with the spread of the virus in some
areas, these industries have also started working again. In Spain,
for example, borders are open to European visitors without the need
for quarantine. The country has been under the most severe
restrictions in Europe for months.
Oil and Iraq bitumen price
In fact, demand for oil also fell as restrictions on the corona outbreak
and imposed homelessness. On the other hand, the price of crude oil,
between OPEC and Russia, had previously affected which, fell sharply
due to the corona. Moreover, Brent crude, used as a benchmark in Europe
and the rest of the world, fell below $20, the lowest level in 18 years. Recently, with the lifting of the traffic ban in some countries and rising demand,
oil prices have also risen.
Consumer trust and the oil market
As people moved into the house, the number of customers visiting the
business units decreased at an unprecedented rate. Nevertheless,
according to the Shapertrack Research Institute, the number of pedestrians
on the streets has recently increased again. Another study shows that
consumers are still worried about returning to stores.
Hope to make a vaccine
Many countries around the world have promised to spend billions of
dollars on the corona vaccine. Respectively, several pharmaceutical
companies have also competed in the preparation and testing of possible
drugs to return the world to a “normal” state with these drugs. Hopes
for approval of some of these drugs led to a sharp rise in the stock value
of some of these companies. For example, they recorded the value of
AstraZeneca shares. The company said it could produce two million doses
of the vaccine. Demand for this product has been increasing in some
parts of the world, such as Asia; however, other factors, such as the
efforts of major oil producers such as Saudi Arabia, have not been
ineffective in limiting production in this area.
Iraq bitumen price and the oil market
Technically speaking, the outbreak of the corona has had a devastating
effect on the oil industry and its affiliates, which, in addition to lowering
prices, has led to the dismissal of employees of oil companies and the
forced reduction of their costs. Additionally, air traffic has dropped
by about 70 percent year-on-year, according to the International Air
Transport Association, as air travel has declined due to corona-related
restrictions and border closures.
To sum up
Yet, with the increase in online shopping due to numerous quarantines,
fuel demand increased to some extent due to the increase in the volume
of goods transfers. Notwithstanding, oil demand is still far from normal
market conditions; The International Energy Agency said last month
that economic recovery could delay demand for oil prices back to normal
for years. As the final point, the oil market has seen a drop in prices since
the beginning of last year, as the activity of many industrial units reduced
or stopped after the corona outbreak, and the closure of borders
and the cessation of air travel affected demand.
