Oil price shocks jamming the global recovery

Oil price shocks jamming the global recovery

March 14, 2011/daily

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Dong Xiucheng (Director, development research center of China University of petroleum China oil and gas industry): recovery in international oil prices continued to rise on weak world economy will certainly have a negative impact, but how it is difficult to determine accurately, but there are differences in the effects of different types of economies. Due to the light of changes in the economic structure has in developed countries, coupled with the energy industry and alternative energy development, petroleum reserve system is perfect, ability to deal with high oil prices, and therefore relatively less impact. For oil-exporting countries, higher oil prices could increase revenue, so the overall positive impact on. For emerging economies, as in the development stages of industrialization and in the current face inflationary pressures, high oil prices will inevitably lead to rise in the production price index and may indirectly pushed up consumer price index and offset the effects of some of these countries to control inflation policy. (Ding Xiaoxi interview)