The Collapse of Oil Prices: Economic and Political Implications
The Collapse of Oil Prices: Economic and Political Implications

Author(s): Bartosz Bieliszczuk
Subject(s): Supranational / Global Economy, Energy and Environmental Studies, International relations/trade, Economic development
Published by: PISM Polski Instytut Spraw Międzynarodowych
Keywords: COVID-19 pandemic; oil prices; global economy; economic slowdown; reduced demand for oil; global recession; energy market; oil export;
Summary/Abstract: Together with the COVID-19 pandemic and the economic slowdown caused by the restrictions to slow the spread of the coronavirus, the demand for oil has fallen, followed by prices. These drops were further fuelled by the collapse of the OPEC+ summit, which was to limit output and increase prices, and the rivalry between Saudi Arabia and Russia for market share. As a result, oil prices have fallen to record lows, which together with oversupply and the expected global recession, will pose a serious challenge for the biggest producers and countries dependent on oil export revenue.

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