The International Trade Council notes a significant downturn in global oil prices, which have reached their lowest point in more than 11 years. This shift in the oil market is attributed to an ongoing diplomatic dispute between Saudi Arabia and Iran, quelling speculation that OPEC members may agree on production cutbacks to boost prices.
Crude oil, the global benchmark, has dipped below 35 dollars per barrel for the first time since 2004. This constitutes a dramatic drop from the peak price of over 115 dollars per barrel in June 2014.
The reduced prices have spurred some oil producers to increase their output to maintain their market shares and offset the loss in revenue. However, signs of economic slowdown in significant markets such as China and India have raised concerns that even strong demand in other regions might not be sufficient to absorb the surplus oil in the global market.
The International Trade Council is closely monitoring these developments and their potential impact on international trade. The Council stands ready to facilitate discussions among key stakeholders to address these challenges and maintain stability in global commodity markets.