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Over 30% drop in Brent crude oil prices. Commodity cheapest since 2021
Forecasts for Brent crude oil prices are not positive for investors. However, they may lead to a reduction in fuel prices. Fot. Øyvind Hagen, materiały prasowe Equinor
Since mid-January 2025, the price of Brent crude oil has been experiencing an almost permanent decline. After a brief rebound in March, the commodity is once again becoming cheaper. The barrel value is the lowest since February 2021.
Over the past week, the price dropped by about 10.9%, reaching $63.30 per barrel. A month ago, at the beginning of March, the price was around $68.33 per barrel. A year ago, in April 2024, the price reached a peak of $91.17 per barrel. Three years ago, in April 2022, the price hovered around $99.97 per barrel.
Four years ago, in April 2021, the price was about $62.80 per barrel. Five years ago, in April 2020, the price was around $20 per barrel, which was a result of the global demand drop due to the COVID-19 pandemic.
Four years ago, in April 2021, the price was about $62.80 per barrel. Five years ago, in April 2020, the price was around $20 per barrel, which was a result of the global demand drop due to the COVID-19 pandemic.
Who or what is responsible for the drop in Brent crude oil prices?
One of the main factors for the decline in Brent crude oil prices is the escalation of trade tensions between the USA and China, as well as other countries. This leads to concerns about a global economic slowdown and reduced demand for energy commodities. Additionally, the OPEC+ decision to increase oil production by 411,000 barrels per day from May 2025 has contributed to concerns about market oversupply.
Goldman Sachs analysts have lowered their forecasts, predicting that the price of Brent crude will be $69 per barrel in 2025. Meanwhile, EIA forecasts indicate an average price of $74 per barrel in 2025, with the possibility of further decline to $66 in 2026. Some analysts point out that potential supply disruptions due to sanctions and tariffs may cause short-term price increases.
Goldman Sachs analysts have lowered their forecasts, predicting that the price of Brent crude will be $69 per barrel in 2025. Meanwhile, EIA forecasts indicate an average price of $74 per barrel in 2025, with the possibility of further decline to $66 in 2026. Some analysts point out that potential supply disruptions due to sanctions and tariffs may cause short-term price increases.
On Monday, April 7, in the morning, the price of Brent crude was briefly $62.54, the lowest since February 2021.Photo: Equinor press materials
The current price reductions, exceeding 30% annually and nearly 40% over a longer period, result from a complex combination of economic, political, and geopolitical factors. Investors also pay attention to short-term fluctuations. These range from nearly 16% (since the beginning of the year) to 9.30% (monthly scale) to the detriment of investors.