• Focus Area Energy and Economic Vulnerability Energy and Economic Vulnerability
  • Type Workshop brief
  • Date 10 August 2017
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Abstract

Price shocks are a feature of international oil markets, with the oil price collapse in the second half of 2014 being the most recent example. These episodes are a source of macroeconomic disruption that harm economic activity in the short and medium term, particularly for oil-exporting countries. The recent emergence of non-conventional oil – such as light, tight oil – represents a critical change in oil markets. Investments in non-conventional oil react very aggressively to changes in oil prices, impacting the structure of oil markets, and could reduce volatility in the future.

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