crude oil Current Affairs - 2020

23.4 % decline in Growth Rate of Eight Core Industries in May 2020

Index of the Eight Core Industries for the month of May 2020 was released on 30th June 2020. The index was released by the Office of Economic Affairs (under the Department for Promotion of Industry and Internal Trade). Out of the total items included in the Index of Industrial Production, the Eight Core Industries comprises of 40.27 percent weight of the total.

The Eight Core Industries are: (i) Coal (ii) Crude Oil  (iii) Natural Gas (iv) Refinery Products  (v)Fertilizers (vi) Steel  (vii)Cement  (viii) Electricity

Highlights from the Index

Growth Rate of the Eight Core Industries has improved from a -37 percent in April 2020 to -23.4 percent in May 2020. The negative Growth Rate is due to the effects of Nationwide Lockdown in the months of April and May 2020.

Growth Rate of the Eight Core Industries in 2020:

  • January: +2.2 percent
  • February: +6.4 percent
  • March: -9.0 percent
  • April: -37 percent
  • May: -23.6 percent

Among the Eight Core Industries, only the Fertilizers Industry has been able to register an increase in growth rate in the month of May 2020 when compared to May 2019. Rest all 7 Industries have witnessed a decline.

In May 2020, when compared with May 2019, the Steel Industries have registered the highest decline of 48.4 percent among the Eight Core Industries.

IEA Report: Global Energy Review, 2020

The International Energy Agency recently released Global Energy Review in 2020. The report highlights the global energy demand in 2020 and carbon dioxide emissions.

Highlights

The report was prepared by collecting data from 30 countries. This includes India and China.

Key Findings of the report

According to the report, 15% of the daily electricity demand has been reduced. The decline was mainly due to complete lock down in the countries such as India, Italy, France, UK.

Service Sectors

The decline in power consumption was noted in countries where service sectors were dominant. The service sectors included were hospitality, retail, tourism and education.

Fossil Fuel

The lock down has also reduced fossil-fuel based power generation. In India, according to the report, electricity production from coal has declined by 32.2% as compared to 2019 level.

Coal

The Global Coal Demand reduced by 8% as compared to 2019. This was mainly due to three reasons. One, China, a coal-based economy was hit badly. Two, availability of cheap gas. Three, increased use of renewables.

Oil

The oil demand was reduced by 5%. The transport connectivity all over the world has been reduced by 50% and aviation has been reduced by 60%

Carbon Dioxide Emissions

The Carbon Dioxide Emissions have declined by 8% as compared to 2019 levels. This is almost 2.6 giga tonnes. These levels of carbons dioxide was found in the earth’s atmosphere before 10 years.