Oil price continues to tumble: will petrol get cheaper?

As Covid-19 cripples the economy, lower fuel prices and reduced inflation may provide some relief

Oil rigs in Cromarty Firth June 10th 2019, Cromarty, Scotland, United Kingdom. The Cromarty Firth is used by oil rig companies for its shelter and close proximity to the North Sea and oil fie
Oil rigs in Cromarty Firth, Cromarty, Scotland
(Image credit: Kristian Buus)

The global oil industry is facing a perfect storm as demand plummets because of the coronavirus pandemic at the same time as a spat between Saudi Arabia and Russia causes supply to skyrocket.

The oversupply means countries are running out of storage space for their excess of black gold, in what consultancy IHS Markit calls “the most extreme global oil supply surplus ever recorded”.

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William Gritten

William Gritten is a London-born, New York-based strategist and writer focusing on politics and international affairs.