Home Strategy Business Oil price war interpreted adequately

Oil price war interpreted adequately

At the moment, three main oil producing countries the USA, Russia and Saudi Arabia are fighting the oil war price. In spite of making agreements in one of their meetings where it was finalized among OPEC members to reduce the oil supply by 1.5 million barrels per day. None of the countries seems to follow such agreements. Most specifically among them, Russia, was one who all of sudden increased the supply of crude oil out of nowhere. It has always been a rule of trade that whenever supply happens to increase more than the demands than certainty without doubt prices are going to decrease down.

Examining the main reason behind the high amount of supply

It is obviously clear that if demand is all down but if you still make the supply higher than beyond the shadow of a doubt, there will be considerable destruction in terms of hard cash which ultimately leads the lower levels in terms of A financial surplus, especially the difference between the amount earned and the amount spent in, producing oil, hard cash will not be gather together, the employers will not be receive their pay, there won’t be work, if there will not be any work, than unemployment is only thing which could be form up in a result.


Therefore that is all the scheme which Russia is planning to do so. Increasingly the supply and lowering the process all knowingly on purpose. Where on the other hand Russia all knows that shale energy companies in the USA are all made up of private corporations if following the market trend of reducing costs of crude oil all the negative sides could be happening to the USA.

Rusia can be mistaken

Here the question arises if the USA will be facing the tortures of inflicting  suffering from crude oil prices as a punishment or in order to force them to withdraw from the field of application. By decrease in prices and all the other worst sides which we had already elaborated above could happen to the USA then why not with Russia itself and among there is Saudi Arabia and so forth small countries completely relying on the exports of crude oil what will be happening to them. Besides there has been a meeting and an agreement brought forth during the OPEC meeting.

Russia is considering to prevail crude oil war in one attempt

Well the answer in the context depends on all the aftermath which is calculated by Russia where he is trying to suppress the number one crude oil producing country, the USA who contributes almost the half of percentage in crude oil to the entire world. RUSSIA is doing so, so that if USA manages itself in the scheme than soon enough Russia will be one in providing oil, after the fall of other producers it can decrease the supply in order to stable the market and make up all the losses faced during this pandemic by decreasing the prices


Such deflation in crude oil prices can positively impact the international traders as that of the surgical mask industry as kn95 manufacturer. Moreover it is a definite win win situation for oil buying countries and 3 ply face mask manufacturer and so forth businesses .

Must Read

How Coronavirus Affects Dogs and Cats

After the first positive test for a coronavirus in a dog, many people wonder how the coronavirus affects cats and dogs. Today we talk...

The Best Compliance Staffing Ideas to Avoid Any Complication in Any Organization

The government and legal authorities often implement rules and regulations for the business sector to ensure everything goes properly and smoothly. The laws are...

How Does the Gold Loan Calculator Work?

Gold has been playing an important part in the Indian economy for a long time. It is imbibed in our history as well as...

How to Disable Voice Control Feature of the iPhone?

In this digitally advanced world, almost every person uses a smartphone. The popularity of smartphones has forced companies to add some cool features. Moreover,...

How video marketing will increase eCommerce conversions?

The role of modern technology and its sources cannot be ignored. From traditional TV commercials to YouTube ads, everything has transformed nicely as per...