The novel coronavirus is not only wreaking havoc on social sectors but on business too. The virus has brought oil prices into negative, crashing the stock market. Just like other evident events, the American cartoon Simpson predicted the oil market crash too.
Stock market crash 2020
Since the 2008 financial crisis, stock markets globally recorded their biggest one-week slumps from 24 to 28 February. Furthermore, markets worldwide became notably volatile from March. On March 9, most markets recorded critical decreases, largely due to the coronavirus pandemic; and an oil rate war between Russia and the OPEC countries influenced by Saudi Arabia.
As of March 2020, global stocks have witnessed a decrease of at least 25% during the crash and 30% in most G20 countries. On March 20, Goldman Sachs predicted that the US GDP would contract 29% and that unemployment could reach 9%. Besides, Australian Prime Minister Scott Morrison has declared the emerging financial crisis similar to the Great Depression.
Furthermore, the decline in the need for travel and the dearth of industry activity due to the COVID-19 pandemic heavily struck demand for oil, making its price to fall.
Source: UNU
In February, the International Energy Agency projected that oil demand in 2020 would be the least since 2011. Chinese demand drop resulted in a conference of the Organization of the Petroleum Exporting Countries (OPEC). OPEC discussed a latent cut in the formation to compensate for the loss in demand. The cartel originally reached a provisional agreement to decrease oil production by 1.5 million barrels per day after a meeting in Vienna on 5 March 2020.
OPEC and Russia did not agree on oil production cuts. Saudi Arabia and Russia both stated raises in oil production; hence, oil prices plummeted 25 percent.
On 8 March, Saudi Arabia suddenly declared that it would boost production of crude oil and trade it at a discount (of $6–8 a barrel) to consumers in Asia, the US, and Europe. The most significant reductions targeted Russian oil consumers in northwestern Europe.
Thus, the war between Russia and Saudia Arabia along with the Coronavirus pandemic led to the crash of oil stock across the globe.
The prediction of Simpson
In a video, it is evident Simpson is adding fuel into a vehicle. However, the price in the instead of rising went downwards. From $ 99999 to $ 00000 the price plummets in the meter though Simpson is adding fuel. It depicts the current picture of the US oil prices, $0 per barrel.
The Simpsons saw the oil price drop to zero pic.twitter.com/rREDihorP8
— Russian Market (@russian_market) April 21, 2020
Earlier, Simpson predicted the Ebola virus, which was later denied as a conspiracy theory by his makers. The cartoon depicts real events of the US politics and society along with notable episodes of the globe.
Source: IMBD
people on social media reacted heavily to the prediction of Simpson regarding oil prices decline
Ah oh!
Simpsons also predicted that @realDonaldTrump would be president
— Eivind (@Derivativess) April 21, 2020
Somehow!
World’s Best Fortune Teller The Simpsons & The Economist
— Aysun Karaytug (@AysunKaraytug) April 21, 2020
Maybe or maybe not
If you talk about all possibilities someday you will definitely be right
That’s not more than the infinite monkey theorem— python.finance (@finance_python) April 21, 2020
Capitalism!
Was thinking the same. Heading to the gas station to get paid for filling up my gas tank. What a great time this is. Capitalism is great.
— Milton Financial Market Research Institute (@Milton_FMR) April 21, 2020
Well…
may be the Simpson’s didn’t predict all of this, may be it’s a self fulfilling prophesy…. pic.twitter.com/DuPgRgZpp7
— Gary the Beav (@Gary_the_Beav) April 21, 2020
Above all, whether it was a prediction or a random script it became true just like other scripts of Simpsons. Besides, the prophecy or oil crash could lead to a more volatile situation if the pandemic persists.
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