Oil price collapse

Brent crude prices fell from over $110 a barrel in mid-2014 to under $30 by early 2016, driven by surging US shale production, OPEC's decision not to cut output to defend market share, and slowing Chinese demand growth. Oil-exporting economies with government budgets built around much higher prices — Saudi Arabia, Russia, and Nigeria among them — faced sudden fiscal shortfalls, currency pressure, and in several cases had to draw down sovereign wealth reserves or borrow to cover the gap. The shock is widely seen as a catalyst for Saudi Arabia's Vision 2030 diversification program launched in 2016, and it compounded the effect of Western sanctions on Russia's economy following the 2014 Crimea annexation. Oil-importing economies, by contrast, generally benefited from cheaper energy costs and lower inflation.