BANGLADESH INSTITUTE OF INTERNATIONAL AND STRATEGIC STUDIES

GLOBAL OIL PRICE RISE AND ITS FALLOUT ON SOUTH ASIA

Author: Hosna Jahan Shewly

DOI Link: https://www.doi.org/10.56888/BIISSj2008v29n4a4

ABSTRACT

Energy use has been central to the development of world economy over many centuries. Among the energy sources, oil has gained a global predominance due to its relative versatility, low cost and transportability. The price of fuel oil, on which most of the wheels of industrial civilization run, has been rising sharply for the last couple of years. High oil prices are fuelling one of the biggest transfers of wealth from oil importing countries to oil exporting « countries. On the other hand, oil price hike creates bigger economic problems for the oil-importing developing countries. In this context, this paper tries to elucidate the underlying factors . causing this unremitting oi] price hike and its consequences on the South Asian economy. Although the paper aims to focus on the oil price rise and its fallout, the conclusion analyses the current rapid fall in price and recent global economic downturn, and how the unexpected rise and fall of price affects weaker economies.