Summary of Global Implications of Lower Oil Prices

Looking for the report?
We have the summary! Get the key insights in just 5 minutes.

Global Implications of Lower Oil Prices summary
Start getting smarter:
or see our plans

Rating

8

Qualities

  • Innovative

Recommendation

Many observers believed the massive drop in oil prices that began in mid-2014 would have a significant positive impact on the world economy. Instead, experts have adjusted global growth forecasts downward for 2015–2016. In a new era of low oil prices, both winners and losers will emerge, and countries must adjust their policies accordingly. This comprehensive and accessible report from a multidisciplinary team of economists at the International Monetary Fund offers readers a solid grounding in the shifting dynamics of energy prices. getAbstract recommends this informative text to energy producers and energy consumers everywhere.

About the Authors

Aasim M. Husain et al. are economists with the International Monetary Fund.

 

Summary

Understanding the impact of lower oil prices must begin with a discussion of why they dropped so dramatically in such a short time. Between June 2014 and January 2015, oil prices plunged by about 50%, due mostly to greater supplies: The United States developed its shale oil reserves, and OPEC nations such as Iraq, Libya and Saudi Arabia exceeded their expected output. In late 2014, OPEC decided not to limit production. At the same time, demand deteriorated in Europe and Asia. While speculators may have exacerbated oil price swings, they didn’t cause the drop. In fact, the extent of the decline caught the market...


More on this topic

Customers who read this summary also read

Russia’s Growth Problem
8
The 2018 Report of the Lancet Countdown on Health and Climate Change
8
Going Digital Is Hard for Oil and Gas Companies – But the Payoff Is Worth It
8
Between Debt and the Devil
9
Global Waves of Debt
7
Latin America: An End to Boom and Bust?
8

Related Channels

Comment on this summary