Oil prices are falling; will they continue to fall due to the pandemic?

Abstract

In the following article, we will address the drop in oil prices due to the coronavirus crisis. We will touch on topics such as how this phenomenon affects our country and other Latin American countries, and how, in the daily struggle that the economy has become, developing countries fight to progress and emerge.

Internally, we will see how Ecopetrol, the organization in charge of oil extraction in Colombia, is reacting to the crisis, and what methods it will use to counteract the severe blow caused by the aforementioned situation.

We will see how something we once called "black gold" is now not wanted even for free, all because storage costs are much higher than the selling price, resulting in losses instead of profits. As mentioned earlier, all of this is due to the coronavirus, which has caused airports to close, cars to stop driving, and many other consumers of the precious mineral to stop buying it; a severe crisis for which no one was prepared.