The Historic Fall in Oil Prices and Its Consequences for the World Economy

There will be no winners, everybody will lose

 

Oleksiy Volovych,
Ph.D. in History

Part 1

 

Lately, the whole world has been worrying about two problems: when will the COVID-19 pandemic decline and for how long will oil prices stay low? Symptoms of lower oil prices were observed in 2019 due to rising oil supply, mainly in countries that have not joined the OPEC+ agreement. First signs of an impending “oil war” appeared last year, mostly in the Saudi Arabia — Russia — USA triangle. In early 2020, the situation changed dramatically as a result of the worldwide collapse in oil demand, caused by the spread of coronavirus.

It is clear that low prices weaken Putin’s economy and, consequently, Russia’s aggression against Ukraine. Thus, Ukrainians perceive low oil prices as… an “ally”. Let’s try to predict for how long this capricious “ally” will be supporting Ukraine in this way and weakening Russia.

The article is available in Ukrainian

Part 2

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