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South Africa: Oil prices drop: What will fuel the energy industry post-COVID-19? On April 20, 2020, the global petroleum industry witnessed a historic plummeting of benchmark US oil below $0 a barrel

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South Africa: Oil prices drop: What will fuel the energy industry post-COVID-19? On April 20, 2020, the global petroleum industry witnessed a historic plummeting of benchmark US oil below $0 a barrel. Brent crude oil also has fallen nearly 70% from the beginning of the year. The drop in oil prices raises questions about the future of the global and regional energy industry as well as the role of fossil fuels in the transition towards a more sustainable energy future after the pandemic economic lockdown.

Use the extract above to write an essay in which you discuss the following:

• The name of the shock mentioned in the extract                              (2)
• The effect of the decline in oil prices on economic growth in South Africa (to discuss this point sufficiently, an AD-AS graph and detailed explanation are required.)