Covid-19 impact on oil sector.
Byline: Syed Ovais Akhtar - Karachi
RECENT developments in Pakistan's oil sector underscore the need to maintain its strategic oil reserves at all times. A shortage of the commodity became evident when Covid-19 started spreading around the world. At the point, when world oil prices had fallen drastically, there were reports that the government was considering the import of oil at those prices. However, later when oil prices decreased, there was no extra oil storage capacity in the country. Had such a capacity existed, the government could have stored cheap oil in bulk quantities and sold the oil strategically when the lockdown eased and demand rose again.
Though the Covid-19 pandemic has affected everything around the world curtailing economic activity, there is hope that the consumption of various oil products will rise again as Prime Minister Imran Khan has announced the gradual easing of lockdown restrictions across Pakistan. Small businesses and transport are reopening to partially revive the economy. In many other countries flight...
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