WORLD HISTORY

Detailed explanation-1: -Oil price increases are generally thought to increase inflation and reduce economic growth. In terms of inflation, oil prices directly affect the prices of goods made with petroleum products. As mentioned above, oil prices indirectly affect costs such as transportation, manufacturing, and heating.

Detailed explanation-2: -In percentage terms, oil intensity first improves at rates below global GDP growth, allowing global oil demand to rise. Over time, given its linear functional form, the rate of intensity improvements will accelerate to outpace the rate of global GDP growth, and global oil demand will start to decline.

Detailed explanation-3: -Crude oil prices react to many variables, including supply and demand prospects and the perceived risk of market disruptions. Economic growth can drive up the demand for crude oil, while slowdowns tend to lower demand and prices.

Detailed explanation-4: -Oil’s refined products are used to manufacture almost all chemical products, such as plastics, fertilisers, detergents, paints and even medicines, plus a whole host of other products that you might not expect.

Detailed explanation-5: -A study by Bloomberg estimated that come 2018 the most reliant country will be Brunei, with oil exports projected to make up over 60 percent of GDP. This will be nearly 15 percent more than the second most reliant country, Kuwait, and perhaps surprisingly, almost double that of Saudi Arabia.

Detailed explanation-6: -What Factors Affect the Demand and Supply of Oil? The factors that affect the demand and supply of oil include levels of oil consumption, oil reserves, global exchange rates, environmental issues, politics, and oil speculation on the financial markets.