Early Impacts of COVID-19 Pandemic on the Crude Oil Prices and Demand in Sub-Saharan Africa: A Review
Description
In March 2020, the World Health Organization (WHO) proclaimed COVID-19 a global pandemic with no therapy/vaccination or universally accepted therapeutic modalities. This resulted in the implementation of containment measures such as lockdowns, which hindered economic activities and, as a result, hampered global demand, consumption, and product transportation. The global crude oil supply chain was one of the most affected. As a result, this study was done to examine the effects of COVID-19 on global crude oil markets and its consequences in Sub-Saharan Africa (SSA), using Kenya and Tanzania as case studies. Preferred Reporting Items for Systematic Reviews and Meta-Analysis (PRISMA)-based content analysis approaches were utilized to analyse data from multiple sources, and the COVID-19-induced oil price crisis was compared to previous global crude oil gluts from 1970 to 2020. It has been determined that global crude oil prices dropped by 65.96% from around $69.25/barrel in January 2020 to $23.57/barrel in June 2020, with WTI reaching $-36.98/barrel in March 2020 (one of the highest in recent times). As a result, petroleum prices in Kenya and Tanzania fell by 30%. This, however, did not result in long-term energy price stability in the SSA due to a lack of logistical and storage capabilities. More research on energy storage, consumption, analysis, modelling, and preparedness for COVID-19-like disasters are suggested. Data from various trustworthy sources were gathered to enable a thorough and accurate investigation of the effects of covid-19 on energy prices.
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Moi University
World Bank Group through the Africa Center of Excellence II in Phytochemicals, Textile and Renewal Energy (ACEII PTRE)