Due to the slowdown in global oil demand and the lack of cooperation between oil-producing countries, the oil price has fallen markedly since the start of 2014. This is boosting the purchasing power of oil-consuming countries and is therefore positive for these countries. However, we should not forget the negative effects of the fall in the oil price for OECD countries, which cancel out part of the positive effects:
– Fall in oil-exporting countries’ imports;
– Risk of instability in some oil-exporting countries that had counted on a far higher oil price;
– Discouragement of the efforts to reduce consumption of fossil fuels (fall in the prices of these types of energy, less appeal for renewable energies);
– Decline in inflation; and hence a risk of a rise in real interest rates and deflation in some countries.