The Impact of Novel Coronavirus (COVID-19) on the Global Oil and Aviation Markets

Abstract

The Novel Coronavirus (COVID-19) is an infectious disease that is believed to have originated in Wuhan city, Hubei Province in China around the end of December 2019 and, had spread to 74 countries and territories so far; this virus is growing every day and is becoming a real concern for citizens, governments and businesses around the world. This paper describes the spread of the disease in China and the world and discusses its impact on the world economy focusing on two major industries the oil and the aviation industry. (COVID-19) have shown until now a negative impact on the global economy but in this paper, our main focus will be on two markets where china plays a major leading role; Several analysts estimate the negative impact on Chinese and Global economy if the epidemic continues. By analyzing the available data, the coronavirus scale is larger compared to any epidemic in the past due to its high contagion risk and asymptomatic cases, but the virus effects doesn’t stand only on the number of cases but also on the economic losses, we believe that the Coronavirus will severely affect the air travel and the aviation industry in the short run, and will have a significant impact on the world oil industry production.