Oil prices plunged nearly 40% this week, marking the sharpest decline since the 2020 pandemic. Analysts cite heightened trade wars between major economies and a supply glut from record U.S. shale output as key drivers.
The downturn has triggered emergency OPEC meetings, with one delegate stating:
This isn't a normal correction—it's a structural market shift.
Critical immediate effects include:
- Energy stock selloffs in Asian and European markets
- Canceled drilling projects affecting 15,000 jobs
- Gasoline price relief for consumers
While experts debate recovery timelines, most agree sustained volatility will shape energy investment decisions through 2025. Longer-term, renewable energy pivots may accelerate as fossil fuel uncertainties mount.
