Our Planet Climate and Geopolitics
At just under $70 a barrel, Brent crude oil is trading at similar prices to 20 years ago. Lower prices have added to fears about a slowdown in economic activity in the US, after Trump announced tariffs on major trading partners.
Saudi Arabia is also worried. At below $60 a barrel, most US producers can still make good returns.
But Saudi state producers are less comfortable with oil being so cheap and have fought hard to pump up the price above $80 by holding back production through coordination with Opec+, the group of oil producing nations that includes Russia.
However, starting in April the group has said it will end long-standing production cuts by increasing output by a combined 120,000 barrels a day – tacit acceptance that prices will stay low for the foreseeable.
Welcome to the new world.
