Oranges beat oil in the time of Corona

In the time of the Corona, the oranges defeated petroleum, the engine of the economy

In light of the repercussions of Virus Covid-19 Corona disease around the world and its impact on the global economic system that caused the loss of more than $ 3 trillion in global stock and exchange markets, from its appearance on January 20 to the end of March, according to the BBC, the Dow Jones Industrial Average fell by 23 in London's FTSE 100 points to 25 percent, and these are the biggest quarterly declines since 1987.

According to the New York Times, the crisis in the emergence of the emerging Corona virus has paralyzed the global economy and is in a devastating recession, but fears are increasing that this contraction will continue for a long time even after the end of Corona, said Kenneth Rogoff, an economist at Harvard University and co-author. History of financial crises: "This time is different, I feel that the 2008 financial crisis was just an experiment of what is happening now."

Orange juice has the highest price since 5 years

Prices for orange juice contracts and its role in the Corona Stadium were not lost, as it registered at the end of last March a rise of 30 percent, to reach on the New York Stock Exchange to 121.65 dollars per contract since 2015, and the size of a single contract is measured by 15,000 pounds and is called futures and means the prices that will be sold. By the product in the coming months.

Increased demand for oranges and less oil

Demand at Corona Stadium played an important role in changing prices, as the result turned in favor of oranges against oil after the widespread demand by consumers for oranges. For humans, as one cup of orange juice contributes to killing the Corona virus in some cases because it contains 124 milligrams of vitamin C.

Supply has not gone unnoticed by Corona's effect, as chief global market strategist at AxiCorp broker Stephen Ennis said: “The outbreak of Covid 19 strikes both supply and demand of orange juice as immune-enhancing properties are the pull factor on the demand side, while there are no spaces Sufficient carrier with airlines that do not fly to bring the product to the market.

At a time when we are witnessing an increase in demand for oranges and a rise in its prices, this rise faces a sharp decline in oil demand after the movement of cars in most of the countries that imposed quarantine and the lack of movement, mixing and transportation from one city to another, and the stops of aircraft and ships in the transportation of goods and services as a result of the closure of large and small factories,By 80 percent in the major industrialized countries, the large decrease in fuel demand has also resulted in the closure of the major auto and other factories in the United States of America and the People's Republic of China, which are among the largest oil importing countries in the world.

copyright M.Essebaiy Abo Rimass