Geopolitical Risks Influencing Oil Price Behaviour Globally

Abstract

Oil has been a significant source of energy for the global economy since the last industrial revolution and serves as the primary energy source for both industries and transportation. The study also mentioned that oil price volatility has main points for both policymakers and also for macroeconomics due to its overall specific macroeconomic implications. The study has examined that geopolitical risk is highlighting a number of uncertainties and major threats that are directly arising from many aspects. In addition to this, it has been analysed in this paper that the oil markets globalization has effectively built an interconnected system where a number of geopolitical risks that are involved in even one region can have different effects throughout the world. Geopolitical risks focus on shaping the behaviour of global oil prices, influencing the dynamics like economic growth, supply chains and market stability. This study focuses to analysing how political instability, supply chain disruptions and trade policies affect oil prices through using a mixed-method approach, which combines primary quantitative data, survey analysis through IBM SPSS and secondary quantitative through thematic analysis. The findings of the study indicate that geopolitical crises are inducing some significant volatility in the prices of oil, with asymmetric impact between different forms of geopolitical events. The study also shows a strong relationship between factors like supply chain disruptions, political instability and fluctuations in the prices of oil.