With the collapse in US crude oil prices, a reliable commodity has turned less than worthless. Alarm bells are ringing for global growth, the COVID-19 outbreak announces a new round of deflation and financial devastation while ruining the world economy. Having cash will be very important to survive.
Those who want to prepare for the worse scenerio should be in a position to face a credit collapse and a variable set of basic problems if banks tighten their belts with the collapse of the US shale industry and the growth of energy companies’ debts.
The price collapse reflects almost the absence of energy demand, which was once considered constant.
So the point is, we have to start rethinking other things, the basic collapse must be read not only for oil, but for everything.
Theoretically, it is hoped that cheap fuel will provide a rapid return with the global economic recovery that will result from the oil production cuts starting from May and the possible improvements of COVID-19 pandemic threat. However, predictions for the future mean taking a gamble.