Do Oil Prices drive the economy?
For over six years, Energy Ink Magazine has been dedicated to the delivery of insightful, well-research, and impactful energy industry news with an emphasis on the oil industry. As such research has provided insights into the critical driver of oil prices, our website is now dedicated to providing up to the minute oil prices from around the globe and news on how they impact the world in which we live.
The history of the “oil price” in the United States as an economic driver follows an odd path. As a net importer for most of the life-cycle and the history of oil as a commodity, the U.S. was subject to the power hold OPEC had on supply. The Middle East commanded the global economy in many ways as it set production benchmarks that affected global markets. If OPEC indicated it was going to restrict supply, global markets reacted.
Not only would crude oil prices drop, but so did industrial markets like the Dow Jones. In fact, the Dow and the Brent crude and WTI benchmark oil prices were locked together for decades. But as the world emerged from the recession in 2012 and the U.S. shale industry survived the market share war waged by OPEC in 2015, that connection was broken.