A significant segment of the modern Russian economy is the production, refining and sale of oil and oil products. Therefore, the well-being of many citizens directly depends on oil prices on the world market. These prices are constantly changing. What are the reasons, for example, to reduce them?
In order to understand the reason for the change in oil prices, you need to understand the very pricing policy in this area. There are several dozen countries in the world - the largest oil exporters. Twelve of them are members of OPEC, the organization of oil exporting countries. Among them, the largest hydrocarbon producer in the world is Saudi Arabia, as well as Venezuela, Iraq, Iran, Qatar, Nigeria, the United Arab Emirates and other states. This organization was created on the principle of a cartel, and its purpose is to protect the interests of exporting states. Protection is expressed, among other things, in the establishment of quotas for oil production. This makes it possible to keep prices at an acceptable level for the states and prevent overproduction. From the previous explanation, one can deduce the first reason for the decline in prices - an increase in quotas for oil production by OPEC countries. Such a decision may be caused by both the needs of the market and the political goals of the cartel member states, but the pricing in the field of hydrocarbon sales is complicated by the fact that not all exporting countries are members of OPEC. For example, Russia, as well as a number of African and Latin American countries, form a pricing policy for this market segment independently. And a sharp increase in oil production on their part can also reduce world prices. Another reason for the decline in oil prices may be internal political instability in exporting countries. For example, a destabilization of the political situation, a war or a revolution in a large producing state will most likely lead to an increase in hydrocarbon prices, and the solution of this problem will lead to their stabilization and decrease. Another important factor influencing the pricing of the fuel market is the state of the global economy. An example of the action of such a factor could be observed in 2008. Due to the growth of the world economy, as well as the war on the territory of a large exporter - Iraq, prices rose to record values of $ 140 per barrel. But after the transition of the mortgage crisis in the United States to the world level, an economic recession began, which resulted in a decrease in oil consumption at the expense of production capacities. There was a classic crisis of overproduction and oil prices fell, suggesting that the decline in oil prices is caused by economic or political reasons, and more often by a combination of both.
