Question

how covid 19 impact crude oil?

Answer 1

The industry is considering burning its oil in Russia, one of the world's biggest producers, to take it off the market, sources told Reuters. Norwegian oil giant Equinor (EQNR.OL) cut two-thirds on its quarterly dividend. Next week, earnings results will come from the largest oil firms in the world, including Exxon Mobil Corp (XOM.N), BP PLC (BP.L) and Royal Dutch Shell PLC (RDSa. L). Many of them are expected to outline further budget cuts, and investors will be closely watching how those businesses plan to handle dividends.

The market is driving all producers into their pockets. Governments and companies around the world are planning to shut down the production and many have already begun.The Organization of the Petroleum Exporting Countries and their allies have already agreed to annual daily production cutbacks of 10 million barrels that have yet to take full effect. The dedication was not adequate to keep the oil from dropping below zero.

Saudi Arabia has said it, and other leaders of OPEC are willing to take further steps, but have not made any new commitments. It is a indication of the extent of demand destruction that the supply can still surpass demand even though OPEC stopped producing altogether.

At a time when the global crude oil price is going south, India's crude oil and natural gas output fell 6.1 per cent in 2019-20 and 5.2 per cent in 2018-19, respectively. Even affected by the Covid-19 lockout, during the same duration in 2019, crude oil output fell 5.5 per cent and natural gas fell 14.38 per cent in March.
Production in 2019-20 was approximately 254.38 million tonnes, down 1.1 per cent from 2018-19. Public-sector refinery output during 2019-20 was approximately 144.71 million tonnes, which is 2.18 per cent lower and 4.15 per cent lower than the year target and production in 2018-19 respectively.