How Oil Prices Affect the World’s Economies: Beginner to Intermediate Guide
Beginner To Intermediate Economics Guide By Zeeglobalvision | Oil Prices, Inflation, Trade, Currency, Growth, Government Budgets And Households Oil is one of the few commodities whose price can affect almost every economy in the world—even countries that produce very little oil themselves. That is because oil is not used only in cars. It affects: Road transport Aviation Shipping Agriculture Construction Mining Manufacturing Petrochemicals Plastics International trade When oil becomes more expensive, the effect can move from crude-oil markets into fuel prices, freight, company costs, consumer inflation, interest rates, currencies and economic growth. But there is an important rule: Higher oil prices are not equally bad for every country, and lower oil prices are not equally good for every country. Zeeglobalvision Principle: Before deciding whether an oil-price movement is “good” or “bad,” ask: Why did oil move? Is the country a net im...