Global oil prices have plummeted by 20% this week, driven by escalating conflicts in key production regions and weakened demand forecasts. Analysts warn of prolonged volatility as diplomatic efforts falter. This is unlike anything we’ve seen since 2020, notes economist Clara Mertens.
Three factors are accelerating the crisis:
- Disrupted supply chains in the Strait of Hormuz
- Overproduction by major oil exporters
- Declining industrial activity in China
Renewable energy stocks surged amid the turbulence, signaling a potential market shift. Meanwhile, the EU plans emergency talks to stabilize energy reserves ahead of winter.
Consumers may see relief at pumps, but inflation risks remain high.– Global Energy Monitor Report