Episodes of Fluctuating Oil Prices Through the New-Normal Era: The Historical Perspective (1946-2020)

Abstract

Crude oil as a principal energy source is one of the most dynamically transacted commodities, and changes in oil price have been a constant phenomenon over the years. The uncertainty associated with fluctuations in oil price affects global economic stability.  However, this paper centers on historical events and trends of fluctuating oil prices at different periods, including the recent new-normal era of the COVID-19 pandemic. It captured all the detailed oil price shocks' events at various intervals, from 1946-2020 and the possible factors responsible for the constant changes in the global oil prices.  An economic model is proposed to close the revenue gaps in these highly oil-dependent nations, given that the "oil age" is gradually fizzling out.

Keywords: Episodes, Fluctuating Oil Prices, Oil-exporting nations, Covid-19 Pandemic, Declining Oil Revenue, Economic Model

DOI: 10.7176/HRL/53-03

Publication date: April 30^th 2021