IJSRP, Volume 10, Issue 5, May 2020 Edition [ISSN 2250-3153]
Rishabh Sancheti, Sambhav Sancheti
A massive decrease in oil prices due to the COVID-19 pandemic has led to negative future contracts and with oil tankers and ships being filled up, the economy has taken a big hit due to a significant decrease in demand. Negative oil prices have both decreased economic growth and thus the Gross Domestic Product of the United States. We see that the aggregate supply has increase with the aggregate demand decreasing leading to oversupply of oil. We further evaluate that the recovery will be U-shaped due to short-term difficulties, however in the long term remain positive that the prices will stabilize.