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The United States And Saudi Arabia

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It’s a particularly noteworthy development when oil prices are down by 50%. During the past decade, the price of oil has traveled from $60 per barrel to its peak of $146 during 2009, then in 2015 it fell into a steep decline again to below $50. Since oil is sold in a global market, the increase or decrease of its price has a tremendous impact on all economies throughout the world. This research goes in depth on how the shift in oil prices has affected Saudi Arabia and the US’s economies, the world’s biggest oil producers. The issue will be broken down to three components; a brief summary of the laws and regulations that possibly affected the change in oil prices, how it is currently affecting the US and Saudi Arabia’s economies, and their quest for alternative solutions. The purpose of this research is to analyze how both the United States and Saudi Arabia have been affected and what progressive measures they are willing to take in response to the steep decline of oil prices.

Origin of recent decline in oil prices Aside from the 2008 crisis, prices of oil have never been cut in half in a matter of months since 1900 – until just recently in 2014. What might’ve caused this steep decrease in prices? Well, it appears as though the surge in US oil production had a primary role in breaking the market. Meanwhile, demand had remained fairly stagnant. Extensive federal intervention into the United States’ oil and gas markets began back in 1930s and continued well through the

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