10 industries getting hit hardest by COVID-19

By Zhang Rui: 0 Comment(s)Print E-mail China.org.cn, March 27, 2020

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6. Petroleum

A gas station in Fuzhou, Fujian province. [Photo/VCG]

China, as the world's largest oil importer and second largest consumer, has seen a sharp decline in oil demands, which directly led to a sharp drop in international crude oil prices. At the same time, Russia and Saudi Arabia sparked an unprecedented price war on oil.

During the pandemic period, the drop of oil prices has led to panicked markets and crashing stock prices including in U.S. markets. Crude oil, as a traditional risk asset, is very sensitive to macro changes. If the pandemic is not controlled soon, there is a risk that oil prices will continue to fall further.