Oil, often considered to be a prime example of an inelastic good—always in demand regardless of price—may not hold true now due to the coronavirus epidemic. With recent news of major air carriers and other transportation companies reducing domestic and international service, it has created a ripple effect in the travel industry as a whole (cruise ships, hotels, resorts). With many would-be travelers canceling their plans, it is fair to say that the foreseeable future for the travel industry is bleak. Not to mention, shutdowns in China have played a significant impact on oil when considering they are the world’s greatest importer of oil. For these reasons, the short-term demand for oil has decreased dramatically, resulting in an eye-opening response from major oil producers across the globe.