Global oil prices have plunged to a four-year low this week, driven by escalating geopolitical conflicts and weakened demand. Analysts warn this historic downturn could reshape energy markets, with Brent crude dropping 18% since January. ‘This is more than a market correction—it’s a systemic shift,’ stated Carla Rivers, chief economist at Vertex Analytics, in a
statement highlighting risks to OPEC+ stability.
Key factors intensifying the crisis include:
- Disrupted supply chains due to Middle Eastern tensions
- Sluggish post-pandemic industrial recovery in Asia
- Aggressive U.S. shale production increases
Reuters data reveals a $15 billion loss for major oil exporters this quarter. While consumers initially welcome lower fuel costs, experts caution that prolonged price depression may trigger job cuts and reduced energy sector investments.