Decrease in fuel demand signals economic recovery difficulties

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Oil prices have continued to hover around $40 per barrel over the course of the last two months, even as Chevron, Exxon Mobil, as well as the Organization of the Petroleum Exporting Countries slash supply to meet decreased demand.

While consumers have largely gained from stagnating fuel prices below pre-pandemic levels, oil providers have experienced declining revenues, leading to layoffs and office closures.

Of course, COVID-19 has not completely stifled the oil industry’s biggest layers. In July, Chevron announced plans to purchase Noble Energy for $5 billion. Since July, the deal has mostly continued unimpeded with the exception of a lawsuit issued by Noble Energy investor David Walsh.

As of today, COVID-19 continues to be a part of daily life while government authorities and medical researchers scramble to find a workable vaccine. In addition to a large human death toll, the coronavirus has done significant damage to global market, including the energy sector.

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