Drop in oil prices, new world record


As the world is witnessing one of the biggest global economic drops in all times, US oil documents a negative number for the first time in history. The price of oil has been on its way down ever since the coronavirus outbreak, but recording a negative number is a new world record. Does that mean the world is heading towards a recession? The coronavirus could undoubtedly lead us there, however a negative drop in US oil prices is not what determines this scenario. It is important to note that oil prices at gas stations is not what determines the actual value of the market price since factors such as governmental taxes and profit margins play a role. That being said, the world can only hope that the demand for oil increases in the next month, in order to generate a quick recovery.


By: Lana Fadel

Source picture: https://www.freepik.com/free-vector/oil-industry-design_4798648.htm#page=1&query=oil%20prices&position=6                                 

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