During 2008 world witnessed the growth in the prices of crude oil reaching a new high threatening the world economy at large, thanks the financial crisis, the recession has brought it down again. It may be exaggerated that increase and decrease in the oil price effects the world economy which is makes it necessary to study its impact on the world economy and how it effects the alternative energy resources.
OPEC reports that the recent surge in the oil prices occurred at the time when there was absolutely no shortage of oil at all. The price upsurge accompanied with volatility has been recognized in all commodity groups including energy, metal or agricultural products with prices doubled since 2005. OPEC reports that it has increased the supply of crude oil by 4 mb/d since 2003 and further increased it by more 1 mb/d with absolutely no shortage of crude oil in the market. (World Oil Outlook, 2008)1
Many elements have led to this volatility in crude oil prices. Keeping aside the demand and supply elements, fluctuations in the dollar value has been the main cause for increase in the prices of crude oil. ...Show more