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Diane Publishing Books
Higher Oil Prices: Asian Perspectives and Implications for 2004-2005
Cyn-Young Park (au)
In 2004, when this was written, higher oil prices were descending upon the nascent global economic recovery. Strong demand growth driven by the global recovery, combined with continuing instability in the Middle East, underpinned the oil price rally. Tight supply conditions continued on higher than expected growth in global demand, partly reflecting fast-growing energy demand from Asia. The risk premium on fear of terror in addition to the tight market outlook appears to have sent the price of oil futures even higher in the short run. Asia remains particularly vulnerable to an oil shock, because of its high dependence on oil imports. Here are two different oil scenarios to shed light on the impact and policy implications of oil price hikes on Asian economies. Ill.
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