Oil and the global economy

In this post, the author describes the effects of the fall in price of oil and how it connects to the global economy. The drop in prices effect the world’s economy due to the fact that oil is a necessity that is hard to come by. No matter what, every country needs oil, and the lowered price creates a higher GDP for each country.

The article talks about how Saudi Arabia is attempting to raise the prices because it is a top exporter of oil. They are attempting this by reducing the production. This is very similar into what we are doing in class.

There is another similarity between this article and class, which is the relationship of a domestic product and world prices. The world price continues to drop closer to the domestic price of Saudi Arabia.

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