“In last few years, the Global oil prices have fallen sharply.” Examine the reasons and its implications for oil producers, consumers and environment.
The fall of oil prices globally can be cited by reasons:
- Low demand due to weak economic activities
- Growing switch away from oil to other fuels
- USA has become the world’s largest oil producer
- Saudis and their Gulf allies have decided not to sacrifice their own market share to restore the price
- US Shale Gas Boom
- Increasing share of renewable energy
On oil exporting countries- For the countries that produce oil, the fall in prices has led to huge loss of revenue. On oil importing countries– They have been able to decrease their fiscal deficit to great extent.