Here's Why This Is Only the Fourth Time Oil Has Tanked

The video discusses four major oil market crashes over the past three decades, each caused by an oversupply of oil. In the 1980s, US production surged, leading to a price drop. The 1990s saw a similar crash due to the Asian financial crisis. The 2008 global recession caused another significant drop in oil prices. Recently, increased shale production in the US has led to a prolonged price slump. Each crash resulted in a significant drop in oil prices, with recovery taking months or years.

What is the primary reason for the oil market downturns over the past three decades?

• Political instability

• Increased demand

• Oversupply of oil

• Technological advancements

How did Saudi Arabia respond to the increased oil production in the US during the mid-1980s?

• By increasing its oil prices

• By cutting its own production

• By opening its taps to flood the market

• By forming a new alliance with US producers

What event coincided with OPEC's increased production in the late 1990s?

• A political conflict in the Middle East

• A technological breakthrough

• An Asian financial crisis

• A global recession

What was the impact of the 2008 global recession on oil prices?

• Prices fell by 78%

• Prices remained stable

• Prices doubled

• Prices increased significantly

What has been the recent challenge in the oil market due to US shale production?

• Increased oil prices

• Decreased oil demand

• OPEC's refusal to cut back production

• Technological limitations