OIL GLUT

AS DEMAND evaporated and as markets were flooded with crude, the US oil markets witnessed an event unprecedented in recent history -- of oil prices falling to sub-zero per barrel. This was a historic all-time low, never seen by the oil industry even as the United States struggled with the oil storage facilities needed to keep the overflowing stocks. The price crash has been attributed to the coronavirus-induced lockdown around the globe. However, the price war had already started in mid-February when the Organisation of Petroleum Exporting Countries (OPEC) led by Saudi Arabia entered into a tiff with Russia over cut in oil production. When both blocs refused to cow down, oil production surged to record levels and brought down prices. It was only after the US intervention a truce was agreed upon. The price crash provides India a wonderful opportunity since it is a net oil importer. India can gain immensely from the situation by filling its own stocks, cutting on the import bills and boosting the tax revenues to offset the low direct tax collection.

ICC’S DILEMMA

THE meeting of chief executives of member boards convened by the International Cricket Committee (ICC) through video conferencing is likely to see a tricky issue of bail-out packages for some of the cricket-playing nations. With no cricket possible at least for next few months due to the coronavirus pandemic, the ICC faces a huge dilemma of keeping its proposed future tours programme in shape even as member nations seek to stay afloat following the financial implications of the ‘virus stops play’ situation. Hardly a few boards, like the cash-rich Board of Control for Cricket in India (BCCI) and to some extent England’s board, have the ability to sustain no-cricket for almost a year. For other boards, it is a matter of survival if action does not begin quickly. The virus has upset the applecart of world cricket and the ICC would have to spend much time in preparing a back-up plan by keeping interests of its member nations in mind. A lot many marquee events like the World Test Championships are at stake for the ICC.