Oil : price and currency implications

Abstract

No doubt, oil is an essential commodity which lubricates every economy. Consumer countries regard it principally as an input in the cost schedules of the commodities they produce. Producers, on the other hand sustain that it is an irreplaceable asset which is continually being wasted. Given the importance it commands in the well-being of all countries, it is surely a subject of great debate reflecting different and opposite views. This had been the characteristic of the oil industry especially throughout these last fifteen years. Most of the international debate hinged mainly on price and currency implications. Although various attempts have been made to weather-off these effects, regrettably saying, the world seems to be in the same position as it was fifteen years ago. This study has attempted to analyse such implications, but such analysis would not be worthwhile should it not give rise to a better understanding of the factors concerned. This study encourages a serious producers - consumers dialogue in the hope that wide fluctuations be neutralised.