Growth in transportation industry including airlines, road vehicles, and maritime are among the major users of fuel oil. As per the International Air Transport Association (IATA), the fuel bill of the global airline industry was anticipated to have valued nearly $188 billion in 2019 which accounted for nearly 23.7% of operating expenditures at an average price of $65.0/barrel Brent. This represents a rise of 4.7% from 2018. The rising availability of low-cost airlines due to the increasing number of air passengers is a major factor for the growth of the global airlines’ sector. However, due to the COVID-19 outbreak, the airlines’ industry has been suffering from major losses and most of the airlines could be bankrupt.
The government across the countries have banned or reduced international travelling as a result of the COVID-19 pandemic. As a result, the decline in air travelling has been significantly affecting the global oil industry. The OMR report titled “Impact on Global Oil Industry due to COVID-19 Pandemic” has provided the pre and post COVID-19 trends along with the segments and region-wise analysis. Multiple authentic sources are used to properly estimate the effect of the outbreak on the global oil industry and values are derived accordingly.
War in oil prices due to the demand and supply disruptions
The decrease in demand and increasing supply have led to a reduction in the prices of oil. To stabilize COVID-19 impact on the global oil industry, in March 2020, Organization of the Petroleum Exporting Countries (OPEC) plans production cut to support the prices of oil. Russia is the largest oil-producing nation in OPEC as compared to other member nations. Russia refused OPEC’s plan to cut the supply of oil. In addition, Saudi Aramco followed Russia’s disagreement to join OPEC plan to reduce the oil supply. Russia and Saudi Arabia are among the major producers of oil across the globe. As a result, the refusal of these countries to cut the supply of oil will further result in a significant drop in the price of oil.
OMR Global recently published report on https://www.omrglobal.com/industry-reports/oil-industry-market
The Report Covers
- Historical market growth estimation in oil industry excluding COVID-19 pandemic effect
- Deviations in the oil industry growth rate due to COVID-19 pandemic
Market Segmentation
- Production
- Onshore
- Offshore
To learn more about this report request a free sample copy @ https://www.omrglobal.com/request-sample/oil-industry-market
Company Profiled
- BP p.l.c.
- Chevron Corp.
- China National Offshore Oil Corp. (CNOOC Group)
- China National Petroleum Corp. (CNPC)
- ConocoPhillips Co.
- Equinor ASA
- Exxon Mobil Corp.
- Public Joint-Stock Company (PJSC) LUKOIL Oil Co.
- Rosneft Oil Co.
- Saudi Aramco
