From over $140 per barrel to under $40 a barrel, oil prices reversed their trend towards a peak and are diving into a trough. The oil price wars may have started it, the oil producers aren’t working to curtail it, and a negative feedback has begun. Oil prices are so low that oil-revenue dependent countries have to produce more to meet budgets, which increases supply, which decreases prices, and repeat. At the same time, renewable energies are becoming more popular and efficient. People are switching for climate reasons, social acceptance reasons, and economic reasons. Organizations are divesting themselves of oil and fossil fuels, removing another support for the companies. The prices also may not reflect reality;
“Citi noted earlier this week that the only thing propping up oil prices were ETFs”
Oil prices may have fallen, but they also be artificially high. Good for local gas prices. Bad for many governments. Interesting time for climate impacts.