THE VOLATILITY OF WORLD MARKET PRICES OF OIL AND OIL PRODUCTS
The main factor shaping the global demand for oil is global economic growth. This factor in recent decades has led to a steady rise in global oil demand. Extremely high oil prices restrain economic growth and increased demand. It also stimulated the replacement of oil by other fuels. At the same time high prices stimulate an increase in oil production in areas with relatively high production costs. As a result of such a restriction of supply and expansion proposals are prerequisites to reduce world oil prices. At low oil prices, on the contrary, it stimulated demand and reduced supply (as a result of coagulation of production and investment in high-cost regions). As a result, conditions are created for further growth of oil prices and oil products.