Question

Major contributing factors to the oil price crash experienced during 2020 explained;

Answer 1

Major factors which contributed to the fall of oil prices is first the Global Pandemic and associated lockdown across the world causing a heavy decrease in demand, further the impact of pandemic was significantly higher in the economies with highest per capital Consumption of crude oil including western Europe and USA , Also OPEC as a body because of its own internal friction couldn't come to term in the production cut which led to surplus in the market further to aggravate the situation was the record production of US shale oil during prior periods ,other factor is the sentiments associated with the Economic downturn which also contributed to the downfall