Nicely written.

I will like to talk a little about this from my point of view. It is true marketing has a lot to do in businesses and oil is part but at the same time, the low price of oil is factored to so many things but not marketing. It is quite easy to say that marketing works fine with Petroleum products sales and making consumers choose a brand to another but with crude it is different. There is little to what marketing can do.

First, crude sale is a national thing in which oil producing countries sell to non oil producing countries. The price of oil has been dropping not because there is no good marketing but because there is an increase in the discovery of oil in countries that did not have oil before also countries that had in low quantities are now finding more which makes the market saturated. There is more of supply to demand. Trump said in a press release when talking about iran that U.S did not need oil from iran since U.S is the largest oil producing country. The world consists of 195 countries with 96 being oil producers, that is about 49% of the countries in the world.

Not forgetting that increase in the consumption of electricity has reduced the importance of petroleum product for household consumption like electric cooking stove displacing the kerosene and cooking gas, electric heaters displacing the old fashion chimney way also electric self driving cars gradually defacing Petroleum Motor Spirit (PMS). This has also showed that petroleum is gradually losing its value in several households.

There will be a fall in price for a commodity that has much supply and losing its relevance gradually.

Thanks for sharing this.