| Image: Reuters| The Pandemic has disrupted economies worldwide, and oil is not escaping unscathed. While fluctuations in oil prices are not new, the latest tailspin sent oil companies and investors in a state of alarm. What does this mean for arguably the most important commodity in the world? The Wholistic View illustrates ( 4 Min Read ). Market forces such as Demand and Supply usually determine the price of commodities but the same cannot be said for oil. The dynamics behind oil prices are often complex, with environmental and geopolitical factors at play. At the start of 2020, demand for oil around the world plunged but oil-producing countries continued to generate the commodity at a surplus. At one point, the price for a barrel of West Texas Intermediate, the benchmark for US oil, fell to a negative -$37.63 a barrel which meant that oil producers were paying buyers to offload the commodity. For years, global oil production has been increasing steadily fuelled ...
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