Polyown Think Tank

Pandemic and Cartel   Shortage of supplies and surge in prices of essentials goods is a rising phenomena since the outbreak of corona virus pandemic. Suppliers of essential goods and other products see this pandemic as opportunity to create cartels and manage the supply and prices of goods. There needs to be a push by regulators and law enforcement to ensure market division and distribution.   The European Commission is of the view that “ global cartel enforcement can benefit from the complementing the two main enforcement models.” One of the enforcers and second of the prosecutors; where enforces decision is final and prosecution is certified in court.  Cartels and other anti-competitive behavior will result in a rise of leniency applications to competition authorities, globally, along with a rise of criminal cartels looking to build up both financial and political capital. Mexican cartels are reported to show their charitable side by providing a

Corona Virus and Oil    U.S. Crude oil prices declined to negative following a deflationary trend due to higher supplies and lower demand amid corona virus pandemic. Further production cuts will destabilize the oil industry resulting in bankruptcies because of failure of companies to meet debt repayments. Government intervention will make the industry sustain its losses and stabilize the industry, however, that will not be adequate as the entire way of doing business has altered just after a few months of emergency measures post-corona virus outbreak, globally. Future trading in oil is bound to take a hit and markets will return to their course only if certainty emerges out of the global Covid-19 pandemic. At Polyown Think Tank, we would like to interact with our readers, please leave your valuable comments and tell us what you think, is the future of oil market post corona virus pandemic.