Kuwait (UNA-OIC) – The General Secretariat of the Organization of Arab Petroleum Exporting Countries (OAPEC) said the novel coronavirus (COVID-19) pandemic caused a unique huge shock to the global economy, unprecedented in decades.
This came in the editorial of the OAPEC Monthly Bulletin (July-August) issued on Sunday, entitled “Prospects on COVID-19 Initial Implications for Global Oil and Gas Markets”.
OAPEC said the world governments had to impose travel restrictions and quarantine measures to face the pandemic. Countries around the world had to lockdown their economies which affected all walks of life, including global energy markets that suffered from sharp decline of demand that led to the collapse of oil and gas prices.
It added that this negative impact has affected the whole energy industry’s supply chains. A number of giant global energy companies announced plans to cut output and review capital expenditure on new projects in light of the sharp decline of profits. Many small-sized energy companies had to stop operations and businesses due to growing debts.