The declining global economy growth has given a negative impact to oil demand which in turn has caused oil prices to drop. The Minister at the Prime Minister's Office and Second Minister of Finance and Economy said that the declining global economy growth for 2020 is due to the spread of COVID-19 despite the World Economic Outlook reporting that global economic growth is forecast to increase moderately to 3 point 3 percent.
Yang Berhormat said that aside from that, failure to reach an agreement to reduce oil production during the recent APEC Meeting, has caused oil prices to drop drastically in mid-January 2020. The oil price which was at 65 US dollars per barrel dropped to about 54 US dollars per barrel in early March and then as low as 31 US dollars per barrel on the 9th of March 2020. In the long term, according to Yang Berhormat, global oil demand is also expected to be decreasing by taking into account that most developed countries have switched to the use of Green Energy and Renewable Energy Technology.
Source: Radio Television Brunei