Oil prices plunged after OPEC’s failure to strike a deal with its allies regarding production cuts caused Saudi Arabia to slash its prices as it reportedly gets set to ramp up production, leading to fears of an all-out price war.
The first graph shows WTI spot oil prices from the EIA. (Prices today added).
According to Bloomberg, WTI is at $32.55 per barrel today, and Brent is at $35.68.
Prices collapsed in 2008 due to the financial crisis, and then increased as the economy recovered. Oil prices collapsed again in 2014 and 2015, mostly due to oversupply.
Currently demand has weakened due to the COVID-19 pandemic, and Saudi Arabia is apparently going to increase production.
The second graph shows the year-over-year change in WTI based on data from the EIA.
Six times since 1987, oil prices have increased 100% or more YoY. And several times prices have almost fallen in half YoY.
Currently WTI is down 42% year-over-year.