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U.S. Department of Energy
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Recession, high stocks help spur oil price drop

Journal Article · · Energy User News; (United States)
OSTI ID:5447362
The drop in oil prices was the direct result of a worldwide economic recession and structural changes in the market. Prices declined when consumption failed to increase during cold weather, but the major cause was a failure on the part of industrialized countries to produce economic growth. The US decline in oil consumption coincided with the recession. The changing role of oil may cause the oil market to become cyclical, with fluctuations in price and consumption. US monetary policies and high interest rates have also slowed worldwide economic growth because petroleum prices are quoted in dollars and because high interest rates raise the cost and risk of oil inventories. An accelerated shift to the spot and futures markets could force the large companies to become more responsive to market changes, while petroleum taxes will cause additional pressures to lower prices. (DCK)
Research Organization:
Booz-Allen and Hamilton Inc., Bethesda, MD
OSTI ID:
5447362
Journal Information:
Energy User News; (United States), Journal Name: Energy User News; (United States) Vol. 7:19; ISSN EUSND
Country of Publication:
United States
Language:
English

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