Global oil prices plunged over 15% this week, marking the sharpest decline since the 2020 pandemic. Analysts attribute the crash to heightened tensions in the Middle East and reduced demand forecasts from China. Energy sector analysts warn of prolonged instability, citing ‘unprecedented uncertainty’ in key producing nations.
OPEC+ emergency meetings have yet to yield concrete steps to stabilize prices.
‘This isn’t just a supply issue—it’s a perfect storm of politics and economics,’stated Clara Mendez, chief analyst at PetroGlobal.
Critical factors driving the downturn include:
- Escalating drone attacks on Russian refineries
- U.S. strategic reserve releases
- Declining industrial activity in the Eurozone
Investors are flocking to renewables, with solar and wind stocks surging 8% post-announcement. Meanwhile, automakers report rising EV orders as consumers pivot from fossil fuels.