Dr. Sikder Md. Anowarul Islam
The economy of Bangladesh is expected to benefit from the dramatic fall in oil prices that continued to fall so far. The consequent consumer benefit depends on the price adjustment at the domestic market commensurate with the international oil price. Oil prices have dropped by more than 40% since June, 2014 due to weak global demand and rising global output. Most global forecasts suggest that the oil prices are unlikely to go beyond $70 a barrel for next few months. It is expected that the current level of extraction will remain the level as it has been recently.
The oil price is partly determined by actual supply and demand, and partly by assumption. Demand for energy is closely related to economic activities. Supply can be affected by weather and by geopolitical upsets. If producers predict the price is staying high, they normally invest, which after…
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