In April, COVID-19 knocks out the most important commodity in the world; the recession becomes a reality

The global confinement associated with the COVID-19 pandemic has affected not only those sectors most associated with oil consumption, but also the fields of exploration and production in industries such as oil and gas, which have estimated profits of US$3.3 trillion. The theory of supply and demand, although insufficient to explain all of the nuances of oil production, is useful for illustrating the double shock resulting from weak demand and excess supply that sank reference prices for a segment of the oil market in April.