Global oil prices have dropped to their lowest levels since the Covid-19 pandemic, driven by a mix of US trade policies under President Donald Trump and OPEC+ decisions to raise production quotas.
Brent crude, the international benchmark, is now trading below $65 a barrel—nearly half its 2022 peak following Russia’s invasion of Ukraine.
While the decline offers relief to consumers and import-dependent economies such as those in Europe, it poses challenges for oil producers and energy-exporting nations.
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The fall has helped slow inflation worldwide, with the US consumer price index showing an 11.8% year-on-year drop in April.
According to economist Pushpin Singh of Cebr, a British research group, cheaper oil increases disposable income, fuelling demand in sectors like leisure and tourism.
However, Singh warned the trend may undermine investment in renewable energy, making green technologies less attractive.
Analysts say the long-term impact on inflation remains uncertain amid fluctuating global input costs.
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