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(1.1) Demand and Supply chaining of oil
Starting from China, the pandemic has spread to many countries. The US also suffers many impacts of the pandemic. The US oil demand drops a lot and It has a lot of impact on US oil demand is all dried up because people are kept in lockdown. The petroleum companies store to rent tankers for storing the excess supply and as a result, the US oil price changed into negative land. Although the WIT price decreased in June, it increases by $20 for each tank. During this, Brent crude- the Europe benchmark and all over the world, was weak and decrease by 8.9%. Capacity can fill fast on land and also at sea. The price of it will down again if this process continues. It can demand health approval and turn the demand on the market. Because of responding of private sector producers
To the low price, there will have a further supply cut . And it is hard to have a sufficient scale for a fundamental impact on the market.
From the start of 2020, the oil price falls to two third. As a result, it has been a lot of decrease in demand for pumps in the US.
It is said that the US government will buy oil sources to store enough for the country. But it has still many worries that the capacity of the silos will decrease. At the beginning of March, the main Cushing which has exported to the US and stored silos increase50%. (BBC NEWS, 2020)
(1.2) Condition of the airline industry
The airline industry got many profits because, at that time, jet fuel decreased, combination and strongest in the last decade. This industry largely impacts the industry and the demand for airlines decreased to 95% at the end of the infecting of covid 19 and it is ended This is the first time that US airlines lost a lot of losses in many years. It compared that the coronavirus is the worst disease in the industry by airline executive. During this quarter, it is hard to see the light end of at end of the tunnel for the airline industry. After impacting of covid 19; unusual space cuts, layoff payment pressure, and government aid. In the previous weeks, the industries were recording all-time profits making it even to digest. Airlines will recover from the crisis and this period of recovery will also be uncharted territory while although it may be difficult to see right now. The surviving period of airlines can be smaller with noticeable changes. But what will the revenue look like and how will the airlines need to re-build their commercial efforts and return to their customers? It causes a few factors because of the driving of gradual recovery. Low-cost carriers are in fewer ways and reduced signings. This all will return because the temporary suspension of slot rules allows airlines. Demand will be slow in returning to airlines. This will focus on the highest network value routes. A close link to individual cities will be had by re-introduction of capacity. In the part of fighting the virus, the virus speaks will see medium or high-risk cities. There have been disadvantages for individual airlines in the past few months some directions may have long-lasting impacts on the network structure in the long term that exists today. Moreover, the industry was seen as a whirl after the financial crisis. Airlines can have to make tough choices about where they fly and retention of slots. There cant have any doubt that US airlines will be different than the way before about networks. In the 6 to 12 months, this can be important how different in the short-term during recovery and eventually in a steady state. There has been a lot of impact on US airlines because of the pandemic and the government tries to rebuild their economy in airlines. Although US Airlines is expanding gradually this summer, the capacity of July is 30% less than last year like other airline industries. The United States realized the plan of United Clean Plus. Before a flight, the airline, and the customers are paid sanitizer for their health. To avoid pollution of individuals, the aircraft is fined by the government. Flight attendance doesnt fill the recovery cup. They will ask the customers to
Throw their trash directly by themselves. The airline services include mainly packaged meals and seals beverages. And also airline request their customers to bring masks.
(1.3) Production activities of the US based on GDP rate
GDP describes the condition of the economy of the country to guess the growth rate. In the first quarter of 2020, the US GDP was 5% the largest since 2008 in the country’s history, it is more than an advance of about more than 4 percent contraction It is the biggest drop in GDP since covid 19 pandemic infected In the middle of the year, the economy contracts 40%.On the consumer side, total expenditure GDP is 68% and purchase of goods is 23% and services are 45%. Private investment accounts for GDP is 16% and government consumption is 18% of GDP. Consumer expenditure which includes 67% of total GDP decreased by 7.6 % in the quarter. The shops which are nonessential have closed long-lasting goods using rate decrease to 16.1% to 10.2 % of GDP. Of service, 30% and 15.3% of exports were dropped and the full economic effects cant be measured in the Gape estimate because of adding the crash in origin data and it cant be an independent measure. When the Commence Department makes its preparation, the total result decreases by 8.25%. From this 3 to 4% may be decreed. For instance, during the crisis of finances, in the first quarter of 2008, the estimated production decreased to 3.8%. During this; the government wants the numbers to more than double. One issue is that because of the lock downing of business and according to the guess of Citigroup, 95% of GDP is under stay-at-home. It was difficult to get the sure numbers of the movement of goods and services… (Shah, 2020)
(1.4) the trends of Labor Market
If the unemployment rate increases, the country has little volunteerism and a high crisis. Since February, the rate the increase by 15.2 million. Another week with unemployment claims trapping 2.1 million means the US Bureau of labor Statistics’ 14.7% official unemployment rate appears even more out of touch with the real jobless rate. The period covered BLS since in mid-April, unemployed US 14.3 million When those 14.3 million are added to the already 23.1 million unemployed US in the latest jobs reports, it brings the total jobless of err 37.4 million. That would be a real unemployment rate of 23.9% closing in on the Great Depression peak of 25.6%. That would be workers asking for unemployment benefits. In general, in 1948, the unemployment rate of the facts are highest and the rate of highest loss of work in one month is in 1939 it is discussed the labor force participation plays in accounting for the differing unemployment experience across countries. More than three-quarters of lay off can describe themselves as temporarily laid off. In a month, the number of people in the labor force on or looking for well fell by 2.5% and reach the last scull since 1970. In May 2020, the labor force participation rate increased to 60.8% in the US after hitting 60.2 the month before which was the lowest since January 1973. The improvement in the labor market reflected IA’s limited resumption of economic activity that has been curtailed in March and April due to the Covid19 pandemic. Aid also the labor force participation rate has dropped steadily since 2000. It is prying merrily because of the aging and retirement of the Baby Boom generation. There has been an increasing a lot of the unemployment rate and labor force participation rate due to the pandemic, in the end of some months expect to have regular jobs for people. When the unemployment rate has risen, the federal government tries to work for many workers. If the unemployment rate has risen clearly and it has existed in the industry and economy for a long time, the government plans for responding to this. From the government, it tries to reduce by two ways of financial strategy. (Cox, 2020)
(1.5) The trends of the labor market
The inflation rate for a country is considered to be the standard of living. If inflation is high, the living standard will also be high. Covid 19 impact on the US economy and the appliance of momentary policy which is used to respond to pressure. As the main inflation rate stable and headline inflation down, during the coronavirus pandemic, the central bank of, it is said that consumer prices increased by 0.1% in the last month. Compared to January, in the place of rising food and accommodation costs, the government uses cheaper gasoline. From February to 12 months long, GPI increased by 2.3 %. It increase by 2.5% in January and from 2018 to October, it get high marks year after year. Food and unstable things like energy which are considered consumer inflation decrease little in April. This is impossible to become a long-lasting problem as the inflation rate is good in the US economy although the price will increase continuously. For example, the natural gas price will increase and it can stop the consumers prices. Although the consumer price in the US unexpectedly increased in February, the cause Coronavirus destroy prices for food and others and some changes in supply It is related to the rate and the cost of inflection, the uncertain condition, the expected amount, and the tax system. It concerns usage because it cant use the main cost and also the businessmen try to change their nominal variables. After the world second world war, the inflation rate of the US isnt easy to increase costs. According to the feedback from the government produced on Wednesday, because of spreading the coronavirus to the whole town In previous Wednesday, the central bank let’s finish a 50-basic-point emergency as the speed of impacting coronavirus to all global economies. Because of the reduction of the inflation rate, the central bank will reduce its interest overnight rate to zero by year-end, given low inflation. (Mutikani, 2020)
(1.6 ) Price level of economy
Now, to reduce the impact of coved 19, all countries try in many ways. It is enough it can relieve a little impact or not. The US government plan was announced that the US departments combine with others departments and agencies to provide Covid 19. Through patients in the US and the action of the government, the US department continually shows the leading of the covid 19 all over the world. The Trump Administrations National Security and Strategies arranged to fight the source of coved 19. The US government is arranged to support the package of services to all other international partners around the world. The US government provides $170 billion to build the SAFER package and it has been a long time on good effects and long-lasting the US government’s global health and other assistance since 10 years ago. While reducing the impacts of the pandemic, the US SAFER package will help to save lives and to expertise for global benefit, to reduce the impact together. The Saver package is part of the path of all US approaches. Whoever, whenever, or whoever, the US SAFER package announced to save lives. The US government put much effort into the SAFER packages to reduce the impact of covid 19 and death. They are prepared to help other international partners impaction of coved 19. This plan helped with $ 10 million last 10 years ago to provide, find, and to respond including covid 19 and other pandemics, they invest in the foundation of international partners. The department said hand washing, self-isolation or social distancing, and hand washing; the building should be built sedately and for other than coved 19 hotlines and referrals systems. As passed for a long time, the US government can act as conveners to maintain those partnerships, as much as venture capitalists use networks to assemble talent. This modern brings government closer to technical and therefore helps agencies become more familiar with new tools as they emerge. In this way, the US government tries to reduce the impacts of the pandemic impact on the country and tries to expand more buildings let to stay during quarantine. And built like a SAFER package to save lives. The US government tries in many ways. (Devdiscourse, 2020)
(1.7)Reference Lists
- Dian Zhang, E. M. (2020, April 8). Coronavirus: How the face mask supply in the U.S. dropped. Retrieved June 13, 2020, from USA Today: https://www.usatoday.com/story/news/investigations/2020/04/08/coronavi
- Shah, K. (2020, March 30). How The Coronavirus Pandemic Will Reshape The US Airline … Retrieved June 13, 2020, from Forbes: https://www.forbes.com/sites/kunalshah1/2020/03/30/how-the-coronavirus-pandemic-
- Cox, J. (2020, April 29). US first-quarter GDP shrank 4.8%, vs a 3.5% decline expected. Retrieved June 13, 2020, from CNBC: https://www.cnbc.com/2020/04/29/us-gdp-q1-2020-first-reading.html
- BBC NEWS. (2020, MAY 8). Coronavirus: Pandemic sends US jobless rate to 14.7% – BBC … Retrieved June 13, 2020, from BBC NEWS: https://www.bbc.com/news/business-52591262
- Mutikani, L. (2020, March 11). Rising food costs lift U.S. consumer prices; coronavirus to … Retrieved June 13, 2020, from REUTERS: https://www.reuters.com/article/us-usa-economy-inflation/rising-food-costs-lift-u-s-consumer-prices-coronavirus-to-weigh-on-inflation-idUSKBN20Y1U7
- Devdiscourse. (2020, April 18). US floats action plan to support global response to COVID-19. Retrieved June 13, 2020, from Devdiscourse: https://www.devdiscourse.com/article/international/1013258-us-floats-action
- U.S. DEPARTMENT of STATE. (2020, April 16). Release of U.S. Government Action Plan To Support the … Retrieved June 13, 2020, from U.S DEPARTMENT of STATE: https://www.state.gov/release-of-u-s-government-action-plan-to-support-the-internatio
- BBC NEWS. ( 2020, April 20). US oil prices turn negative as demand dries up. Retrieved June 23, 2020, from BBC NEWS: https://www.bbc.com/news/business-52350082/comments
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