Analysis of Oil Prices’ Impact on the economy and Industries
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This paper is aimed at discovering the pattern of how oil prices affect the market and relevant industries, from a macroeconomic perspective. The method used here is qualitative research method. First, the effect of oil on the entire market is analyzed, including its transmission from the leading indicator PPI to the lagging indicator CPI, then oil prices’ influence on its value chain industries are expounded, lastly, oil prices’ impact on several segmented industries such as the petrochemical and its sub-industries and automobile industry are shown. Finally, the conclusion can be made that oil is a significant constitute of upstream commodities and can surely affect living costs and quality of citizens if transcended successfully from PPI to CPI, and that oil prices also have tremendous effect on a variety of downstream industries such as petrochemical and its sub-industries, and various transportation industries including the shipping and automobile industries, etc. However, it is still weakened by new challenges in technology, such as the invention and rapid spreading of electro mobile.
oil, crude oil, US, economy, automobile, petrochemical