Question

how the covid-19 affect the oil market

Answer 1

Covid 19 has reduced the demand and lack of demand and continuos supply of the goods have caued the glut in the oil market.

As people are not allowed to get out of their homes, they are not using oil, so the demand for oil has fallen a great deal and continued supply of the oil in the market has cuased a glut. lack of demand will shift the demand curve to the left and decrease the price and quantity, increase in the supply will shift the supply curve to the right and the new equilibrium will be at a lower price and higher output, overall the price has dropped quantity increased.