Reality of Changing Oil Prices and its Impact to Developing Oil Producing Nations

Abstract In recent years the fluctuation in fuel prices coincided with the global economic depression of 2008, further studies indicate that when production of crude oil is more than the demand of the crude oil, crude cost would reduce whereas if there is little supply of crude oil and there is growing demand of crude oil the cost of crude would increase. In this review we explore the various conditions that influence the fluctuation of crude oil, the impact this conditions have to the global price of crude oil and it relation to developments of certain economies as specified. There was found to be correlation between crude oil price increase and an increase in gross domestic product (GDP) of developing oil producing nations also there was found to be a fall once there is a reduction in crude price. This is dependent on if the nation in question is crude oil based economy whereas if the economy in question is more diverse its effect on the GDP wouldn’t be as pronounced.