[ANSWER]SOSC1000 Final Report: Impact of COVID-19 on the World

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Impact of COVID-19

The greatest Impact of COVID-19 pandemic is arguably economic. The traditionally lucrative oil sector provides an ideal example of just how much the pandemic has disrupted economic life. Following the enactment of measures aimed at containing the outbreak, including social distancing, lockdowns and travel restrictions, economic productivity has declined sharply in several countries across the globe since the beginning of 2020, with global economic powerhouses like China being among the most affected.

Decline in economic productivity has had an adverse impact on the demand for oil, a key input in many production activities (PR Newswire, 2020). The result of this has been a rapid decrease in global oil prices, an outcome that saw two major oil-producing entities – OPEC (Organization of the Petroleum Exporting Countries) and Russia – engage in a price war that ended up deteriorating the situation. Oil prices have been rising again since May 2020, but in mid April 2020, they reached a low (less than $18 per barrel) that had not been reached in more than 2 decades, sending shock waves across the global economy (Ambrose, 2020).

The traditionally oil-dependent Middle East has particularly borne the economic brunt of COVID-19 on global oil prices [ Impact of COVID-19]. In Saudi Arabia, United Arab Emirates, Bahrain, Kuwait and other major oil exporters in the region, many production facilities have either shut down or scaled back output in response to the reduced…[Buy Full Answer for Just USD 9: 2291 WORDS]

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Type: Essay

Word Count: 2291

Grade/Mark: 94 (Distinction)

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