The global market price of crude oil and related products has plummeted in the past few weeks, on the heels of a surge in the first half of the year. The per-barrel price of Brent crude is down nearly 12% in August to date, and more than 20% since the beginning of June. Prices are now broadly at the level seen just before Russia invaded Ukraine, triggering a spike in late February. Foreign analysts attribute this most recent dip to three factors:
- New data from the United States show that US inventories are larger than previously estimated.
- The global GDP growth outlook has darkened substantially in the recent past, eroding expectations about growth in demand for crude oil and related products.
- The OPEC+ countries decided to make a marginal increase in supply.