How Covid-19 spoilt the oil bonanza

Conventional wisdom is that when crude oil prices drop, India benefits as it is dependent on imported oil to the tune of about 85 per cent of its total consumption

International crude oil prices have been falling at a rapid pace. Brent crude oil price was $58 a barrel at the end of January. It has now dropped by about 65 per cent to $20 a barrel, principally because the outbreak of Covid-19 and the consequent decline in economic activity have destroyed demand in large parts of the world.

The proposal for a production cut by members of the Organisation of the Petroleum Exporting Countries (OPEC) by about 10 per cent of global output is now considered too small to make an impact. In any case, the production cut was to