The Drivers of Oil Prices: The Usefulness and Limitations of Non-Structural model, the Demand–Supply Framework and Informal Approaches
The behaviour of oil prices has received special attention in the current environment of rapid rises and marked increase in oil price volatility. It is widely believed that high oil prices can slow economic growth, cause inflationary pressures and create global imbalances. Volatile oil prices can also increase uncertainty and discourage muchneeded investment in the oil sector. High oil prices and tight market conditions have also raised fears about oil scarcity and concerns about energy security in many oilimporting countries.