International Report: International Oil Price Disruption

The world’s vulnerability to economic uncertainty and oil price turmoil, and the persistence of the global economy in the face of challenges of high inflation and high interest rates revealed in a report by Australian newspaper The Conference.

The Australian newspaper noted that oil prices were unexpectedly low even as Ukraine’s war continued without a clear end in sight, and other developments failed to boost prices as expected.

China, the world’s largest crude oil importer, abandoned its Covid-19-free policy in December 2022, creating expectations that Chinese oil demand will return quickly with retaliation. But oil is now falling again. unexpected development during a war involving a major oil exporter, At a time when a giant consumer like China reopens after three years of economic isolation.

It noted that this indicates that oil price expectations remain unreliable, and China’s economic outlook and consumption growth are key to demand expectations. Oil demand is closely linked to economic growth because a slowing economy is shrinking incomes, reducing spending, reducing travel and slowing oil manufacturing.

The various economic outlooks have recently highlighted the major challenges facing the global economy, but widespread uncertainty seems to be at the top of the list.