The oil price fluctuates constantly,and recently it has decreased globally,investors are no longer willing to invest in expensive oil, including the U.S. shale oil, deep sea oil and heavy oil. A low oil price has a significant impact on the world both politically and economically.
The impact on different countries can be diverse.The influence on countries is always divided into two types,the developing countries and developed countries,the importing countries and exporting countries. It seems that the sharply falling oil price leads to the decrease of exporting national revenue.while in importing nations,the advantages may far outweigh disadvantages,such as drivers.(Bowler,2015).The purpose of this article is to compare the different effects on different nations.
The article also presents the factors that affect oil price and the general impact of low oil price in the …show more content…
The main problem the public focus on is what low oil prices cost the world economy.Historically, cheap oil price always links to increase of global economy.However,in recent years,in energy industries,the low oil price has led to low investments and low employment(Walsh,2015).
From the perspective of consumption, oil price shock mainly affect economic operation through affecting consumers and business spending.The individual will reduce consumer spending due to the shocking oil price.The enterprise can adjust their production plan according to the concrete situation,which in turn would cause a chain reaction of the economy as a whole.Thus they have more money in other consumption,which may enhance their living