Oil stands alone among primary commodities in its potential for sending economic shock waves across the world. The value of oil production is one and a half times the world's total production of food grains; demand is unresponsive to price in the short run; and the world's oil resources are heavily concentrated in the Middle East where political disturbances have been chronic and oil supply is subject to sudden interruption. Together, these factors have combined since 1973 to make oil a virtual rogue elephant in the world economy.
Oil stands alone among primary commodities in its potential for sending economic shock waves across the world. The value of oil production is one and ...
