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RE: A Complicated Relationship: Oil Prices and the World Economy
Dear @carlos84
One of those posts, which surely are worth checking out and reading through.
[1] That the supply of oil is increasing.
[2] That there is a decrease in the demand for oil on a global scale.
There is also 3rd reason. Price manipulation, which can be caused by political reasons. This industry is full of dirty moves and it's far from free market.
I'm kind of expecting currelt low oil price to be reason for many oil companies to go bankrupt. So once demand will start to recover - we may experience huge price jump. Which will in result inflate prices of ... pretty much everything.
Have a great weekend ahead,
Yours, Piotr
You are quite right in what you say, if oil prices are low then it affects the economy of the producing countries, however when the prices start to rise in an inflationary manner the goods derived from oil will most likely rise in a disproportionate and inflationary manner.
Greetings Piotr excellent commentary.