For years, the world has been grappling with rising oil prices that have strained economies and impacted daily lifeHowever, the tides are seemingly shifting, as indications suggest a significant downturn in oil prices by next yearCurrent futures for Brent Crude oil are hovering just above the $70 mark per barrel, and projections hint that by mid-2025, prices could dip to around $65, with potential lows nearing $60 in certain periodsSuch a scenario is promising news for consumers and industries dependent on oil as a primary energy source.

So, why is this expected plunge in oil prices on the horizon?

The anticipated decline can be attributed to two main factors: internal dynamics within the OPEC+ coalition and external economic pressuresThe Organization of the Petroleum Exporting Countries (OPEC), which includes prominent oil producers such as Saudi Arabia, Iran, Iraq, the United Arab Emirates, Venezuela, Libya, and Nigeria, has a significant influence on oil pricing due to its control over production levels.

In addition to these well-known member states, countries like Russia, Kazakhstan, Mexico, Malaysia, Oman, and Sudan play crucial roles in the global oil market, forming the extended OPEC+ alliance

This coalition aims to curb production to maintain a monopoly-like hold over the international energy landscape.

This monopoly's goal is to stabilize oil prices on the global market—not letting them rise too high or plummet too lowWhile it may sound straightforward, internal disputes often arise within OPEC+, particularly when member nations decide to ignore production caps in pursuit of greater profitsSuch scenarios can lead to member countries undermining one another, sparking conflicts that can destabilize the agreed-upon strategies.

Moreover, exorbitantly high oil prices create an economic ripple effect, prompting oil-importing nations and major energy consumers to pivot towards renewable energy investments as an alternativeThus, OPEC+ faces pressures from outside its coalition that could further push oil-consuming nations away from fossil fuel reliance, ultimately undermining member countries' market share.

Conversely, excessively low oil prices can cripple oil-exporting nations, drastically reducing their revenue

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Following the surge of American shale oil production, OPEC+ members, including Russia and Saudi Arabia, have frequently employed production cuts as a strategy to counterbalance the increased U.Soutput.

Balancing oil prices at what OPEC+ considers a reasonable level is paramount— a curve that translates differently for everyday consumers who may perceive this as a moderate to high price pointThe challenge lies in reconciling this theoretical framework of price stability with the complexities of real-world production dynamics and global demand.

To maintain this balance, discussions inevitably arise around how much oil each member should produceThis can lead to tensions, as some countries may feel slighted by perceived inequities in production quotasFor instance, Kazakhstan's oil output has shifted drastically following recent discoveries of new reserves.

Feeling constrained by these quotas despite investing billions into expanding their production capabilities, Kazakhstan anticipates increasing its oil production by 260,000 barrels per day by 2025, thus raising its daily output to around 2.05 million barrels.

While an additional output of 260,000 barrels per day might appear marginal, it represents a significant percentage increase

For Kazakhstan, the growth from 1.8 million barrels to 2.05 million barrels translates to a remarkable 14.4% rise.

Moreover, when evaluated within the wider context of international energy consumption, Kazakhstan's increment constitutes 25% of the anticipated global increase, which is projected to be around 1 million barrels per day by 2025. Such a shift complicates the dynamics of quota distribution among OPEC+ members.

Market analysts caution that Kazakhstan's burgeoning influence could sow discord within OPEC+. Should it decide to disregard production agreements or withdraw from the coalition entirely, other member states might follow suit, leading to a fracturing of the organization's collective bargaining power.

External factors also play a crucial role, particularly regarding taxation policies.

While OPEC+ is concerned about potential supply-demand imbalances stemming from Kazakhstan's expansion, the U.S

government has proposed imposing a 25% tariff on goods imported from Canada and Mexico.

The targeted criticism towards Mexico targets the flow of immigration, drugs, vehicles, and energy resources, while Canada faces accusations surrounding oil and beef exportsThe U.Sis notably Canada's largest oil export market, driving complaints about perceived imbalances in trade.

This raises poignant questions among the American population who are baffled by continued heavy imports from Canada and Mexico, despite the U.Sbeing a net exporter of oil.

Canada and Mexico are two dominant suppliers of U.Scrude oil, accounting for approximately 52% and 11% of total imports, respectivelyThe juxtaposition of significant domestic oil reserves with massive imports fuels public frustration.

Thus, these new tariffs could serve to bolster domestic energy manufacturers, redirecting energy policy to prioritize maximizing oil and gas production.

Implementing a 25% tariff on Canadian and Mexican imports would inadvertently enhance non-U.S