Analysis of the Impact of Oil Prices on the Global Economy

INTRODUCTION Recently, oil prices have become the subject of debate. Due to the regularity of the metronome, crude oil price seems to have updated new highs. This is bad news for customers who need to pay more. Even more frightening is the possibility that this situation will get worse before returning to normal. Due to uncertainty, we can not predict exactly when the pendulum will return. From a supply perspective, OPEC is a major producer and we are ready to increase or decrease production to balance demand.

Oil prices unexpectedly fell to $ 30 (the lowest level of the US dollar) since 2003, so many people are asking about the impact on the global economy and energy market. In the past, the traditional belief was that the decline in crude oil prices added additional funds to consumers and industries, thereby promoting expenditure and growth of the world economy. Experts often vary in the size of this positive economic impact, but it seems more hesitant to expect that there will be a positive impact on recent oil price declines.

Three important factors have changed the world's energy perception over the past few decades. Changes in oil and gas prices, its impact on the world economy, geopolitical instability in some oil-producing areas, and concerns about climate change. How will dependence on petroleum and other hydrocarbons affect the long-term health of the planet. Since 1990, Dow has reduced energy consumption by 38% and reduced absolute greenhouse gas emissions by 20%. This far exceeds the Kyoto goal. This prevented about 90 million tons of carbon dioxide from entering the atmosphere. With the first billion dollar investment, we have saved $ 9.2 billion.

Oil is an important pillar of our world economy, especially due to the oil crisis in 2014 and its impact on the current state of the US economy, which is the fundamental advantage of investment analysis. By analyzing the current situation of the world oil world economy, you can estimate the benefits of investment decisions by evaluating the impact and secondary impact on various industrial sectors. Energy supply is a fundamental resource of production and historically promoted the technical revolution such as British industrial revolution, so the oil industry is indirectly related to consumption and price. In addition, petroleum has an opposite effect on the strength of the currency, and the dollar has become the strongest level since the turn of the century.