Oil, the main vital resource for the global economy, is witnessing a significant decline in its prices. Despite the decline in production for some exporting countries, the decline has not stopped. What are the reasons behind this significant decline? Certainly, there are major reasons behind this significant decline that occurred since the beginning of the year, and in this article we will review the most prominent reasons that led to this decline, and discuss its impact on the global economy and the countries of the region.
The escalating trade conflict between the United States and China has caused the application of taxes on imports and exports, which negatively affects international trade and thus reduces the demand for oil.
And cut production by the Organization of the Petroleum Exporting Countries (OPEC) and its allies OPEC and its allies cut oil production in order to stabilize oil prices, which led to higher prices in the beginning. However, the production of some other competitors began to increase, which led to lower prices.
Increasing production in the United States It is known that the United States is witnessing a rise in oil production, which leads to an increase in supply and a decrease in prices.
And geopolitical events, where the price of oil is linked to geopolitical events in the world, as some Arab and international countries are witnessing ongoing geopolitical crises, conflicts and tensions, which affects the trading oil fees.
The fluctuation of the oil price is one of the thorny issues in the global economy, which is affected by many external and internal factors, and the last two months witnessed a decline in the price of oil.
