On September 29, 2025, the Brent crude oil price stood at 66.8 U.S. dollars per barrel, compared to 63.45 U.S. dollars for WTI oil and 70.48 U.S. dollars for the OPEC basket. Oil prices rose slightly that week.Europe's Brent crude oil, the U.S. WTI crude oil, and OPEC's basket are three of the most important benchmarks used by traders as reference for global oil and gasoline prices. Lowest ever oil prices during coronavirus pandemic In 2020, the coronavirus pandemic resulted in crude oil prices hitting a major slump as oil demand drastically declined following lockdowns and travel restrictions. Initial outlooks and uncertainty surrounding the course of the pandemic brought about a disagreement between two of the largest oil producers, Russia and Saudi Arabia, in early March. Bilateral talks between global oil producers ended in agreement on April 13th, with promises to cut petroleum output and hopes rising that these might help stabilize the oil price in the coming weeks. However, with storage facilities and oil tankers quickly filling up, fears grew over where to store excess oil, leading to benchmark prices seeing record negative prices between April 20 and April 22, 2020. How crude oil prices are determined As with most commodities, crude oil prices are impacted by supply and demand, as well as inventories and market sentiment. However, as oil is most often traded in future contracts (where a contract is agreed upon while product delivery will follow in the next two to three months), market speculation is one of the principal determinants for oil prices. Traders make conclusions on how production output and consumer demand will likely develop over the coming months, leaving room for uncertainty. Spot prices differ from futures in so far as they reflect the current market price of a commodity.

On April 20th, 2020, the price of West Texas Intermediate crude oil slumped into negative for the first time in history, falling to negative 37.63 U.S. dollars per barrel. The ongoing coronavirus pandemic has had a catastrophic impact on the global oil and gas industry. Declining consumer demand and high levels of production output are threatening to exceed oil storage capacities, which resulted in the lowest ever oil prices noted between April 20th and April 22nd.

For further information about the coronavirus (COVID-19) pandemic, please visit our dedicated Fact and Figures page.

The 2025 annual OPEC basket price stood at ***** U.S. dollars per barrel as of August. This would be lower than the 2024 average, which amounted to ***** U.S. dollars. The abbreviation OPEC stands for Organization of the Petroleum Exporting Countries and includes Algeria, Angola, Congo, Equatorial Guinea, Gabon, Iraq, Iran, Kuwait, Libya, Nigeria, Saudi Arabia, Venezuela, and the United Arab Emirates. The aim of the OPEC is to coordinate the oil policies of its member states. It was founded in 1960 in Baghdad, Iraq. The OPEC Reference Basket The OPEC crude oil price is defined by the price of the so-called OPEC (Reference) basket. This basket is an average of prices of the various petroleum blends that are produced by the OPEC members. Some of these oil blends are, for example: Saharan Blend from Algeria, Basra Light from Iraq, Arab Light from Saudi Arabia, BCF 17 from Venezuela, et cetera. By increasing and decreasing its oil production, OPEC tries to keep the price between a given maxima and minima. Benchmark crude oil The OPEC basket is one of the most important benchmarks for crude oil prices worldwide. Other significant benchmarks are UK Brent, West Texas Intermediate (WTI), and Dubai Crude (Fateh). Because there are many types and grades of oil, such benchmarks are indispensable for referencing them on the global oil market. The 2025 fall in prices was the result of weakened demand outlooks exacerbated by extensive U.S. trade tariffs.

The price of US crude oil has been heavily influenced by factors such as global supply and demand, geopolitical tensions, and market speculation. This article explores the impact of these factors on oil prices, including the effects of the COVID-19 pandemic and the shale revolution. It also discusses the historic collapse of oil prices in 2020 and the subsequent recovery, as well as the factors that will shape the future of US crude oil prices.

Between 2002 and 2024, prices of OPEC Reference Basket oils fluctuated dramatically. For example, Saharan Blend from Algeria stood at some 25 U.S. dollars per barrel in 2002. Ten years later, this figure had increased to more than 111 U.S. dollars. In 2024, it stood at 85.48 U.S. dollars. Oil prices: a rollercoaster ride Oil prices are inherently volatile due to the speculative nature of their price determination. Thus, sudden economic and geopolitical events may have big influences on pricing. For example, some of the major factors behind price fluctuation since the 2000s have been the global financial crisis in 2008, the 2020 coronavirus pandemic, and the energy supply crisis and subsequent Russia-Ukraine war in 2022. As a result, the OPEC basket price has oscillated between lows of 40 U.S. dollars and highs of 110 U.S. dollars. Shale oil overproduction leads to 2010 oil glut The 2010s price crash was caused in part by ever-growing production of domestic shale and tight oil in the United States. Though nearly 80 percent of global oil reserves can be found in OPEC countries, the United States has become the largest producer of oil worldwide in the last ten years.

In May 2025, the average monthly price of the Urals crude oil, Russia's major export oil brand, was approximately ***** U.S. dollars per barrel, having decreased from the previous month. In 2020, the price of the Urals experienced a considerable decrease at the beginning of the year due to the coronavirus (COVID-19) pandemic, dropping to as low as **** U.S. dollars per barrel in April. What is the purpose of the Russian oil price cap? In early December 2022, the G7 (Canada, France, Germany, Italy, Japan, United Kingdom (UK), and the United States), the European Union (EU), and Australia formed the Price Cap Coalition and imposed a price cap of 60 U.S. dollars per barrel on oil originating in Russia. The aim of the price ceiling is to decrease Russia’s earnings from oil exports and thereby limit the Russian government’s budget to finance the war in Ukraine. At the same time, the cap is meant to ensure that Russia continues to supply oil to emerging economies, though at a discounted price. With the cap in place, Russia cannot sell oil at a higher price even to third countries if the oil tankers are financed or insured by members of the Price Cap Coalition. In early February 2023, a price cap of 100 U.S. dollars per barrel was imposed on Russian refined oil products. Global dependence on Russian oil China was Russia’s leading crude oil export destination, with the value of exports measured at nearly **** billion U.S. dollars in 2021. In physical terms, Russia supplied around *** million metric tons of crude oil to China in 2024, being the leading crude oil import origin in the country ahead of Saudi Arabia. Furthermore, European countries were major consumers of Russian oil prior to the war in Ukraine. For instance, Russia accounted for over ** percent of oil and petroleum products imported into Slovakia in 2020. To compare, the dependence rate stood at nearly ** percent in Lithuania, ** percent in Germany, and ** percent in the UK.

Between 2002 and 2024, prices of OPEC Reference Basket oils fluctuated dramatically. For example, Saharan Blend from Algeria stood at some ** U.S. dollars per barrel in 2002. Ten years later, this figure had increased to more than *** U.S. dollars. In 2024, it stood at ***** U.S. dollars. Oil prices: a rollercoaster ride Oil prices are inherently volatile due to the speculative nature of their price determination. Thus, sudden economic and geopolitical events may have big influences on pricing. For example, some of the major factors behind price fluctuation since the 2000s have been the global financial crisis in 2008, the 2020 coronavirus pandemic, and the energy supply crisis and subsequent Russia-Ukraine war in 2022. As a result, the OPEC basket price has oscillated between lows of ** U.S. dollars and highs of *** U.S. dollars. Shale oil overproduction leads to 2010 oil glut The 2010s price crash was caused in part by ever-growing production of domestic shale and tight oil in the United States. Though nearly ** percent of global oil reserves can be found in OPEC countries, the United States has become the largest producer of oil worldwide in the last ten years.

According to Cognitive Market Research, the global Drilling Equipment Market size will be USD 8962.58 million in 2025. It will expand at a compound annual growth rate (CAGR) of 6.00% from 2025 to 2033.

North America held the major market share for more than 37% of the global revenue with a market size of USD 3316.15 million in 2025 and will grow at a compound annual growth rate (CAGR) of 3.8% from 2025 to 2033.
Europe accounted for a market share of over 29% of the global revenue with a market size of USD 2599.15 million.
APAC held a market share of around 24% of the global revenue with a market size of USD 2151.02 million in 2025 and will grow at a compound annual growth rate (CAGR) of 8.0% from 2025 to 2033.
South America has a market share of more than 4% of the global revenue with a market size of USD 340.58 million in 2025 and will grow at a compound annual growth rate (CAGR) of 5.0% from 2025 to 2033.
Middle East had a market share of around 4% of the global revenue and was estimated at a market size of USD 358.50 million in 2025 and will grow at a compound annual growth rate (CAGR) of 5.3% from 2025 to 2033.
Africa had a market share of around 2.2% of the global revenue and was estimated at a market size of USD 197.18 million in 2025 and will grow at a compound annual growth rate (CAGR) of 5.7% from 2025 to 2033.
Deep hole drilling machines category is the fastest growing segment of the Drilling Equipment Market

Market Dynamics of Drilling Equipment Market

Key Drivers for Drilling Equipment Market

Surge in Global Oil & Gas Exploration Activities

The global oil and gas industry continues to invest significantly in upstream exploration to meet the growing energy demand and offset depleting reserves from mature fields. With the discovery of new oil and gas basins in regions like Guyana, Namibia, the Eastern Mediterranean, and the Arctic, companies are ramping up exploration activities. According to the International Energy Agency (IEA), upstream oil and gas investments rose by over 10% in 2023, with a substantial share going toward exploration. Such initiatives require robust drilling equipment, including rotary rigs, drilling motors, mud systems, and advanced bits. For instance, TotalEnergies and ExxonMobil launched multiple exploratory wells in frontier areas, demanding high-performance and durable drilling solutions. As exploration increases in both conventional and unconventional zones, the need for technologically advanced and cost-efficient drilling equipment becomes vital, propelling market growth in both offshore and onshore segments.

https://www.iea.org/reports/world-energy-investment-2023/overview-and-key-findingsGrowing Demand for Geothermal Energy

Geothermal energy is becoming more and more of a feasible base-load power generation alternative as nations step up their efforts to cut carbon emissions and switch to renewable energy. This type of energy is primarily reliant on deep drilling technology comparable to those used in oil and gas, making it an important growing market for drilling equipment makers. Kenya, Indonesia, Iceland, and the United States are among the countries at the forefront of geothermal development. The Olkaria VI project in Kenya and Pertamina's geothermal exploration projects in Indonesia have greatly raised demand for drilling tools that can withstand high temperatures and corrosion. Furthermore, the United States Department of Energy has financed many Enhanced Geothermal Systems (EGS) programs that require advanced drilling technology. With governments around the world subsidizing sustainable energy and researching subterranean heat potential, the need for specialist geothermal drilling equipment is likely to skyrocket, creating a unique diversification opportunity for oilfield equipment producers.

Restraint Factor for the Drilling Equipment Market

Volatility in Crude Oil Prices

Fluctuations in global crude oil prices are among the most significant constraints affecting drilling equipment demand. When prices are high, exploration and production activities increase, directly boosting equipment sales. However, price drops often lead to budget cuts, delays, or cancellations of drilling projects, particularly in capital-intensive offshore environments. The oil price crash of 2020 due to the COVID-19 pandemic is a prominent example, where prices fell below $30 per barrel, resulting in widespread rig deactivations and o...