Since long, Middle East Countries, Russia, Venezuela, etc, used to earn a lot of money by selling petroleum products to different countries. Many countries, which had nothing, became rich soon after the discovery of petroleum products. Now, the economies of many companies are dependent on the income which comes from the export of petroleum products.
Due to the development of the shale oil industry in the USA in 2014, weak global demand, an oversupply of petroleum products in the world market, the prices start to fall sooner than later. All those countries that rely heavily on the sale of petroleum products, started to feel economic problems. Iran and Venezuela, both oil-rich countries, are problems due to economic sanctions imposed by the USA government. They are not able to export their oil to foreign countries as usual.
Due to the Worldwide Coronavirus Epidemic and lockdown in different countries, the demand for petroleum products is an all-time low. Major oil companies in the world have surpassed their storage capabilities. On the other hand, for the last few months, Russia and OPEC countries are at loggerheads on the issue of cutting oil production to stabilize its price. But, to capture a larger market share, these countries keep producing petroleum products in large quantities. As a result, International oil prices have dropped sharply in 21 years. However, it rebounded soon.
More details to follow. Keep tuning us.
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