skip to main content
Briefing

Economic Impact of Oil

Appears in: Advanced Economies, Emerging Markets, Frontier Markets, North America, Macroeconomy, Markets, Commodities, Energy, Growth Outlook and Business Cycle, Oil, Oil and Energy, Systemic Risk, Vulnerabilities and Asset Bubbles

Critical Issues

Background:

The increase in the price of oil and other commodities contributes to an increase in inflation and may exacerbate economic weakness as it reduce demand for both oil products and other goods. Those countries that must import all or the vast majority of their energy sources also face a deterioration of their trade balances as they have to spend more on the imported fuel. Those that subsidize fuel also face fiscal deterioration. These trends were clearly visible in 2008 when an average oil price of US$100 per barrel contributed to the entry into global recession. European countries and Japan are less exposed to oil price spikes than the U.S. and China as their energy use per unit of GDP has been falling and they have higher taxes on petroleum.

 

Access to this content is restricted to RGE clients.

If you have a client code, please enter it here to activate your client account.

Click here for a free trial.

Learn About Our Services:

RGE Research

Our dynamic and intuitive macroeconomic research platform keeps you on top of the extraordinary shifts that transform our global economy, allowing users to uncover unique connections and insights. Discover the resource central banks and that 70% of the world's leading hedge funds, asset managers, PE firms, banks and corporations around the world depend on.

Our market strategists build on the work of our macroeconomic research team, incorporating market dynamics to answer crucial questions and generate actionable investment recommendations. RGE's Market Research and Strategy team gives clients actionable insight across six key asset classes:

• Currencies • Commodities
• Credit • Equity • Gov’t Bonds / Rates
• Emerging Markets • Financials
• Cross Asset Model Portfolio

RGE Strategy

Sometimes, reading research is not enough. Many RGE clients participate at the Roubini Direct Access level to gain a deeper understanding of specific issues. Through interactive live sessions, we engage with world-class thinkers, encourage knowledge sharing, idea generation, risk identification and validation of client initiatives.

Learn More »

For information on becoming an RGE Client, please speak with an RGE Representative in New York at +1 212-645-0010, or in London at +44 (0) 207 092 8850, or email americas@roubini.com for the Americas, europe@roubini.com for Europe, the Midddle East and Africa, and asia@roubini.com for Asia/Pacific.

Associated Readings

Analysis UniCredit Global Research June 2009 When will the oil price reach the USD 100 mark again? Blogs Econbrowser James Hamilton May 31, 2009 Supply, demand, and the price of oil Analysis New Edge Group Antoine Halff Jan 07, 2009 The Outlook for Physical and Paper Oil Markets in 2009 Analysis Merrill Lynch November 2008 The end to global imbalances

Publications

Our Research
?

Our Thoughts
?

Outlook Center
?

Central Bank Watch
?

Key Views
?

Scenario Analysis
?
RGE Clients can activate their account by updating Manage My Account

Top 10 Most Read

Our Thoughts
1. Commodity price divergence
Our Research
2. Europe’s Playbook for Financial Crises
Our Thoughts
3. More bad news in the Brazilian Central Bank's expectations survey
Our Thoughts
4. Why SOE reform is off the agenda in China
Our Thoughts
5. Estimating the impact of faster global growth on Japanese exports
Our Research
6. Recent U.S. Data Signals Suggest Slow and Steady Activity
Our Research
7. The Eurozone Malaise: From Economic Causes to Market Implications
Our Research
8. Debt and Deleveraging: Will China Turn Japanese?
Our Thoughts
9. Rating agencies and sovereign risk in India
Our Research
10. Commodities: Rising Supply, but Sticky Prices

ROUBINI FEEDBACK FORUM

What Do You Think?
Weigh in on Roubini.com's new look or report any problems you encounter.

Website Feedback Content Feedback