[TREND 11] Oil Price Dip of 2020
Historically plummeting crude oil prices affected large oil exporting countries, notably Saudi Arabia, which has experienced an unprecedented double hit. The country has been affected by the COVID-19 shutdowns as well as by even lower oil prices as the world closed down.
This, however, could be an opportunity for the country and other oil exporting countries to start the transition to low carbon and diversifying their industries. Most countries in the Middle East region are already enhancing their industrial sector to change from being oil-driven economies to one driven by manufacturing, trading, production, and mining. This shift in focus will drive growth in the lubricants consumed by the industrial segment. This will also drive the need for more commercial vehicles, helping to drive commercial lubricants consumption growth until 2024.
On the global scale and in normal times, the low oil prices would bring a positive effect on the global economy. This is because lower oil prices benefit the manufacturing sector by reducing the costs for the manufacturing and transport. This reduction of costs could be passed on to the consumer.
With the COVID-19 outbreak, however, there is little hope that consumers will substantially increase their traveling and spending plans.
#klinetrends #kline2020countdown #crudeoil #lubricants #Covid19 #oilprices #exploration #crudeoil #petroleum #oil #gas #oilandgas
Follow our 2020 COUNTDOWN CALENDAR for the 30 biggest trends HERE
Categories
Recent Posts
- How are Companies Using Innovation to Meet LATAM’s Industrial Lubricant Needs?
- Why is India a Hotspot for Professional Beauty Brands?
- 3 Ways to Better Target Salons and Independent Stylists
- How are the EU’s New Sustainability Regulations Reshaping the Personal Care Industry?
- Market Availability of Glyphosate Extended to 2027 in Mexico Due to Lack of Viable Alternatives and Concerns Over Food Production and Security