Body blow to oil exporters, big and small amid global COVID-19 lockdown

While countries like Saudi Arabia, Russia and the US are large enough to manage the crisis, many smaller exporters in Africa and west Asia may be faced with an acute cash crunch this year.

In this file photo pump jacks draw crude oil from the Long Beach Oil Field under Discovery Well Park in Signal Hill, California, on March 9, 2020. (AFP) 

The jaw-dropping fall in global crude oil prices may seem a bonanza for an oil guzzler like India, but the plunge is set to change the fortunes of many countries across the world. For most of the world’s oil exporters, the demand destruction from COVID-19 and the supply glut are poised to deal a body blow to one of their most lucrative sources of cash. While countries like Saudi Arabia, Russia and the US are large enough to manage the crisis, many smaller exporters in Africa and West Asia may be faced with an acute cash crunch this year. Here’s a detailed look at how the world’s economies may be impacted going forward.

Text: Jonathan Ananda, Editing: Aravindakshan S, Design: Sankar Ganesh