Why/how do oil prices effect the world economy?

Question

Why/how do oil prices effect the world economy?

Answer 1

Oil is a major world trade.

Most countries need oil for vehicles and machinery that run on oil/gasoline. Without it things would never get done.

Answer 2

Wow do they, just imagine the amount of money that is spent on Oil around the world every day.

Answer 3

it reduces disposable income available for other goods and services

Answer 4

Oil is a commodity and is extensively traded in business and corporate organizations. AS u know, without oil, there's practically nothing much we can do.. cars, cooking etc all requires oil. Well due to the skyrocketd oil prices, investors lost confidence and there was a huge tumble in market.. Many biz got affected and inflation rose. The world economy fell as an end result.

Answer 5

  Oil and oil products are used in every step of production of every product from apples to Zantac. Diesel, Gasoline, LP gas, jet fuel, are used in production and transportation. Many products contain , or are packaged in plastics, which are made from oil.

Answer 6

Oil provides the energy both for production and transit of goods. This cost does affect the price and ecen the consumption of said goods. Thus the economy is directly affected by oil prices..

Answer 7

too complicated to fully get into..

but ^ in oil prices equals ^ in gas prices which = less travel, less production, less consumption...