World Oil Crisis and its Impacts on the Petroleum Market and the Economy of Vietnam

Xuan Hoi Bui
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Xuan Hoi Bui: Hanoi University of Science and Technology, Vietnam

International Journal of Energy Economics and Policy, 2021, vol. 11, issue 2, 40-48

Abstract: On April 21st 2020, for the 1st time in the word s history, the price of oil contracts for May delivery in the US dropped sharply to below 0 USD and stopped at a negative price as of 37.63 USD/barrel. The world oil market really fell into crisis, which had a significant impact on the oil industry of Vietnam. This article focuses on analyzing and clarifying the essence of negative oil price as well as the world oil market crisis and its impacts on the petroleum market in Vietnam. The findings indicate that the negative oil price was simply the result of a trading session in futures market, but its nature was the interaction between oil futures market and the physical market characterized by the disequilibrium in short-term. A scenario of low oil price dynamics is analyzed and predicted for the coming time. Thereby, the paper provides recommendations to the oil industry and macro governance of Vietnam in order to appropriate countermeasures in this difficult period.

Keywords: Oil price; international oil market dynamics; Vietnam s oil industry and Economy (search for similar items in EconPapers)
JEL-codes: D4 Q31 Q41 Q43 Q48 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eco:journ2:2021-02-5

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