Abstract:

The impact of oil supply reduction of global economic growth is relatively small, and a 1% decrease in the supply of oil would slow global economic growth by only 0.25%. Crude oil is the most heavily traded commodity, world exports amounted to 1.8 trillion dollars per year in the period 2007-2009, which meant about 10% of total exports in that period, which makes the market change oil has direct and indirect effects on the global economy, including in terms of growth, inflation, balance of payments and poverty rate.