When the oil market crashes: A lot.
The global market for crude oil crashed from $US75 per barrel to below $US50 per barrel after OPEC cut production to hold prices steady.
But after the Saudis and the Iraqi government cut back production in an effort to keep prices stable, prices plunged to a five-year low of $US34 per barrel, according to the International Energy Agency.
Crude oil is a key part of the global economy, but a drop in demand could also hit the global energy industry.
But even as prices plunge, a few other sectors are making gains.
Crudes and natural gas are surging as governments ramp up production, and companies like Exxon Mobil and ConocoPhillips are boosting prices to spur growth.
Oil is still one of the world’s biggest exports and the US has the world in its grip.
So oil prices are still a big factor in the global financial system, and the global economic downturn could lead to even more volatility, experts say.
___________________________________________________ _________________________ _________________________________________________________ The American Petroleum Institute (API) is a nonprofit organization that promotes American energy and the environment.
The API is one of four trade associations in the US.
The others are the American Energy Alliance (AEA), American Fuel and Petrochemical Manufacturers Association (AFPA), and the American Petroleum Defense Fund (APID).
The API’s board includes oil industry executives and members of Congress, and its board members are appointed by the president of the US House of Representatives.
The US Energy Information Administration (EIA) is another trade group.
The EIA provides analysis of the economy and its effects on energy production and demand.
The EPA has the authority to regulate greenhouse gases and other pollutants and oversee air quality.
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