Question

How is the demand and supply for the oil market in Morocco ?

How is the oil market regulated in Morocco ?

Impact of covid on demand, supply and price of oil in Morocco?

Answer 1

Morocco consumes high amounts of oil and produces less comparatively,hence it's not an oil rich nation and the demand for oil is quite high .It ranked 123 in the production of oil and 45 in its consumption ,Its average production of oil is just 160 barrels as of 2016 it didn't produce sometimes completely. Morocco imports more than 90% of energy resources from other countries like the USA ,India ,China ,Australia ,France ,Germany and so on. Hence the country is heavily dependent on its imports the supply is always challenging. They consume more than 3 lakh barrels in a single day and their production has never exceeded even 4500 barrels ,its resources have mostly been extracted fully. So the country is looking for other alternatives and hydrocarbons and exploring them .

Morocco's oil policy is regulated by the 'Nantional office of hydrocarbons and mining(ONHYM)'.ONHYM supervises the exploration ,drilling of crude oil. Since the oil requirements are not met by domestic product the ONHYM undertakes the responsibility of importing oil .

Oil prices have fallen since the times of Covid-19 , the global demand for oil has relatively become lower owing to lockdowns. It caused both the negative supply shock and demand shock to the oil producing countries and oil importing countries . Consumer price got dropped by 0.2% in May ,It also cut its interest rates by 1.5 % during the three month long lockdown owing to the limited transportation and economic activities in Morocco .