Summary of Global Implications of Lower Oil Prices

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Global Implications of Lower Oil Prices summary
The new normal of lower energy costs has global economic consequences, both good and bad.

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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.

In this summary, you will learn

  • Why oil prices have fallen so precipitously since mid-2014
  • How lower oil costs affect economic growth in the global economy
  • What policies nations should consider in a low-cost energy environment
 

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...
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About the Authors

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


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