Oil prices fell in August to the lowest level in six and a half years due to increased production and concern that the slowing economy of China, which is a very big energy consumer. US crude oil dropped to 37.7 dollars on 24. august, the lowest since the beginning 2009, when the world economy was hit by the financial crisis and recession.
Figure 1: Oil price bottom on 24. August 2015.
Economists around the world are struggling to assess what will be the effects on the global economy leave the current dizzying increase in the price of oil on the world market. The shocking rise in oil prices the past few decades was accompanied by rising inflation, the decline in employment and the recession. On the macroeconomic radar now no trace of these phenomena. This time it's not about reducing deliveries, but the unstoppable demand, despite the price. If the global economy is tottering and soon, it will be because of a collapse of the mortgage market, and not because of the turmoil in the oil market. Insatiable thirst of China, India and other third world economies on the rise for oil,…