14.01.2015 - Oil Prices And The Significant, Long-Lasting Impact On The Economy
In 2014, a number of events will go down in history as major, market-moving events. From an economic viewpoint, though, perhaps no other event will have a more significant and long-lasting impact than the collapse of oil prices. At this time last year, oil was trading well above $100 per barrel. Last week, the price of a barrel of West Texas Intermediate oil traded at less than $50. Over the years, oil prices have fluctuated. The last two major oil price declines were driven by central bank policy errors – monetary contractions which led to global economic recessions. During an economic recession, the world economic activity contracts and demand for oil declines. When demand for any commodity contracts, prices decline...............................................Full Article: Source
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