COVID-19 leads to 8% fall in oil prices; fears grow over possible shutdown for months

COVID-19 leads to 8% fall in oil prices; fears grow over possible shutdown for months

- An 8% fall in oil prices has been attributed to the coronavirus which has affected people and economies all over the world

- Some equities, however, registered gains, despite the fall, which has been described as the worst since 2002

- JP Morgan, an investment firm, says the global Gross Domestic Product could contract at a 10.5% annualised rate in the first half of the year

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Oil prices took an 8% dive on Monday, March 30, 2020, as world shares fell and fears mounted over a possible global shutdown.

However, some equities recorded gains even though the current fall is on record as the lowest since 2002.

Australian equities reportedly posted gains as the government outdoored a support programme and Wall Street recorded marginally positive results.

READ ALSO: Fall in oil prices: Report shows Ghana can lose over GHC4 billion in oil revenue

YEN.com.gh understands that Brent slumped to $22.5 a barrel leaving it down 65% for the year and hammering petro currencies such as Russia’s Rouble, Mexico’s Peso and the Indonesian Rupiah by as much as 2%.

Reuters.com reports that the Euro lost about 0.7% of its value, leaving it at $1.1050 and sterling at went as low as $1.2350 after Britain had become the first major economy to have its credit rating cut because of the coronavirus on Friday, March 27, 2020.

According to JP Morgan, an investment firm, the global Gross Domestic Product (GDP) is likely to contract at a 10.5% annualised rate in the first half of the year.

In other news, the Rand Refinery Limited, located in South Africa, is on record as Africa’s only refiner of gold and one of the oldest in the world.

The global spread of the coronavirus has, however, negatively affected operations at the refinery, causing it to operate at a limited capacity.

The limit in operations has become necessary as it attempts to curb the spread of the virus in the wake of a national lockdown.

READ ALSO: Ghana's IES raises alarm as global oil prices experience a massive fall

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Source: Yen News

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