Oil price fluctuations affect all links of fashion’s value chain: fibers, transportation and consumption. The fashion sector depends on oil throughout its value chain. Logistics is one of the links of fashion’s value chain that’s dependent on oil. Fashion globalization, both in its sourcing and its distribution, forces the sector to build a transportation network by land, sea and air. In fact, most fashion exports move by boat, where petrol is the main fuel.

If the oil price war continues, one of the direct repercussions will be on the price of textile fibers derived from it, such as polyester, one of the most used fashion raw materials, or nylon, also derived from black gold. Polyester production has been increasing in recent years. Its production tripled between 2000 and 2017. Nylon production has also increased although its use in fashion is more residual.

The collapse of petrol is the result of a decision by Saudi Arabia, the greatest producer of crude oil in the world, to offer its oil at massive discounts. Price war in the oil market will also have a potential impact on the consumer’s spending power. The forecast for the oil market is even more pessimistic than in November 2014, when a similar price war began, as it adds to the significant collapse of oil demand due to the coronavirus.