Global oil prices collapsed this week, plunging over 20% as escalating tensions between major producers destabilize markets. Analysts cite overproduction by Saudi Arabia and weakened demand from China as immediate catalysts.
‘This isn’t just a market correction – it’s a geopolitical reset,’warns IMF energy chief Clara Delgado.
Ripple effects are already visible:
- U.S. shale producers cutting drilling budgets
- EU accelerating renewable energy transition talks
- Venezuela urgently seeking new export partners
While consumers welcome short-term relief at fuel pumps, the long-term economic outlook remains uncertain. Energy ministers from OPEC+ nations will convene emergency talks on Friday to address the crisis.
