Title: The Impact of Covid-19 Pandemic on the Oil and Gas Industry

Topic: the fluctuation of oil price during pandemic covid-19

Outline:
 Oil and gas industry
a. Description
 Impact of the pandemic Covid-19
a. Fluctuation on price
 Fluctuation of oil price
a. Indonesia oil price fluctuation
b. World oil price fluctuations
 Conclusion

Title: The Impact of the Pandemic Covid-19 on the Oil and Gas Industry
Topic: the fluctuation of oil price during pandemic covid-19
Oil and natural gas are major industries in the energy market and play an influential role in the
global economy as the world's primary fuel sources. The processes and systems involved in producing
and distributing oil and gas are highly complex, capital-intensive, and require state-of-the-art technology.
Historically, natural gas has been linked to oil, mainly because of the production process or upstream side
of the business.
COVID-19 has caused global imbalances in many aspects ranging from health to the economy.
The market has experienced a series of stock fluctuations, especially in oil prices. Indonesia, as one of the
countries severely affected by COVID-19, has difficulty in the oil and gas industry as one of the largest
contributors to state revenue (APBN). In general, price fluctuations are a spike or inaccuracy that befalls
the prices of certain products. While the development of fluctuations can be described through charts or
diagrams. The occurrence of price fluctuations of certain products is usually caused by realities that
directly appear in society.
World oil prices continue to decline amid the pressure of the Covid-19 pandemic. After
experiencing a period of negative prices, the price of West Texas Intermediate (WTI) type oil was
recorded trading at a price of 12.71 US dollars per share for the delivery contract in June 2020
(seekingalpha.com, April 28, 2020). While the price of Brent oil is trading at 22.98 US dollars per share,
and stable is at a trading interval of 22.5–25.12 US dollars per share for the same surrender period
(investing.com, April 28, 2020). This shows the outlook of world crude oil prices has not shown
momentum for the hit.
The subsidy of the fuel is considered as a burden over the national budget of Indonesia from the
past several years. By following this scheme, the fuel products are sold based upon fixed prices that is
below the price of market which is determined by the government (Hossain & Raghavan, 2019).
Therefore, an effort is made by the government of Indonesia which reduces the fossil fuel subsidies by
eliminating the subsidy for several petroleum products that gradually links with the international price of
oil.
The decline in world oil prices has started to be seen since Covid-19 was declared a global
pandemic. Many countries have implemented lock downs and strict restrictions on the activities of their
citizens, causing a drastic reduction in consumption of fuel oil (BBM) and resulting in a decline in crude
oil prices. During the Covid-19 pandemic, world oil prices continued to fluctuate in line with the
perceived lack of oil demand. This condition also has an impact on Indonesia's crude oil prices

REFERENCES:
Hussain, N. (2020). Fluctuations of Oil Prices and Gross Domestic Product in Indonesia. Asian Business
Research Journal, 5.