Data of past four decades show that elevated oil prices had been co-terminus with surge in global economy. Prior to the economic crisis of 2008,most nations , in particular the advanced economies were doing very well and world trade was flourishing.Global trade indexed at 50 in 1990 improved to 100 in 2000, shot up to 250 in 2008 ,prior to the global crisis.Crude was languishng in the sedantary decades prior to 1990 at around $35 . The decade 2000-2010 was significant for crude oil ,both for its demand and pricing.As global trade peaked so did crude shooting to an unprecedented $145 in end 2007. When global economies sufferd post 2008-09 ,Brent crude fell to $90 by end 2010.Ithas been averaging $115 from then on,till the recent big dip .
During this period,the epicenter of growth was also shifting to nations dependent on oil import and so has the pattern of energy consumption.Insuch a backdrop, prolonged low price of crude portends a stasis in world growth and hence trade .Export driven economies like Brazil ,China ,in the absence of growth led demand elsewhere ,may not be as enthusiastic over the price dip
During this period,the epicenter of growth was also shifting to nations dependent on oil import and so has the pattern of energy consumption.Insuch a backdrop, prolonged low price of crude portends a stasis in world growth and hence trade .Export driven economies like Brazil ,China ,in the absence of growth led demand elsewhere ,may not be as enthusiastic over the price dip
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