As a preamble to this discussion and as we stand today, we all know that COVID-19 has impacted the world economy in an unprecedented manner. Even before the invasion of COVID-19, the nations of the world have espoused a conservative and prudent approach to their public finances and national budgeting. In the current scenario with devastation caused by COVID-19 worldwide, this approach is becoming the norm rather than a choice.
For instance Brent Crude, one of the two benchmark prices, has shown a downward volatility and is likely to favor this trend at least into the near future. On the 21st of April 2020, for the first time since 2001 the Brent Crude dropped below $20 a barrel. The countries who could make a major chunk of their public finances through the revenues earned from oil exports are now reducing 'public spending or so to speak managing them cautiously and prudently. That said, that is the right way forward coupled with simultaneously exploring non-oil based industries with their state of the art infrastructure.
This session will focus on key aspects of the current turmoil situation faced by the leading oil trading economies and the possible impacts on the market in general. In addition to this, the session will also address the past fabulous decades of these economies when crude was offered in excess of the budgeted price.