How does crude oil price affect economy of any country?

Question

trough inflation increase

Answer 1

You have to remember how much oil is used in the production of thousands of products.  It is used in everything from food production, building of infrastructure, and most of all mobility of its consumers.  The 1st world countries like the US, Japan and EU require alot of oil in keeping up their high standard of living. High crude prices directly increase prices on goods that use oil in their production and transportation.  When G.W. says we are addicted oil, he is right.  When you are driving around one day think about how many things you do require oil; cars, roads, gas, food, heating, electricity, clothes, paints,, plastics, pharmaceuticals, etc.  These things need crude oil to exist.  Think about life before oil.  The US was largely an agrarian society.  Our neighborhoods were all closely settled together to get to goods and services.  With oil's price rising and supplies shrinking, we could see our way of life change as quickly and dramatically as it did when it was first drilled.

Answer 2

crude oil is a raw material , so if it's prices rise it,s transportation , processing and resultant product will also face price rise . petroluem, a bi-product of crude oil , is used for transport of daily consumer and overseas goods . thus , in a chain it affects country's economy .

Answer 3

high oil prises .. high transportation prices ... higher product prices .. your dollar becomes worth less ... the economy goes into recession ...  

   But no worries .. the oil companies have record profits!!