Oil Price Crash & Post-Covid World Economy
The unprecedented April Oil Price crash which saw Oil prices move into negative territory for the first time in History poses a serious threat to the Global Economy as the Coronavirus continues to shock the world economy by reducing global Oil demand at least 30% at the same time as Russia and Saudi Arabia engage in a Price War which has resulted in Oil flooding global Markets.
The glut has lowered Oil Prices to historic levels as Oil Futures Trade at minus US$40.00 a Barrel because of a shortage in storage space to store the excess Oil.
Financial Argument explores the potential implications for the future of the Global Economy and the US Dollar as low Oil prices pose a threat to the stability of the US Dollar and the entire Global Economy which uses the US Dollar as a Reserve Currency.
Is this the end of the US Petrodollar, and could we be seeing a new Economic Order in a Post-Covid world?