When oil prices finally go up
Oil fell to its lowest level since April 2004 at the start of this year – below $30 a barrel. The price collapse has been seen as a “positive supply shock” for the global economy, helping boost consumer spending and could even make petrol cheaper than water in the UK.
But another energy price shock – of the negative kind – was ranked as having the fifth greatest impact on the global economy until 2026, according to WEF’s experts.
Analysts have said that the lower the oil price descends the faster it will eventually rebound, with many expecting rising global demand and a tailing off in production levels by the second half of the year. Higher prices would squeeze consumers and push up global inflation.
But a rally in oil prices – whenever it comes – is likely to remain modest. Opec, the cartel which controls a third of the world’s supply, says it does not know when prices will rise again.
All of this proves jobs and demand for manufactured goods and many services are falling off. The movement of money is reducing and the world is going into a depression which will cause poverty, reduced birth rates, reduced job pay, reduced job hours, and reduced prosperity in every imaginable form.