HIGH PRICES OF OIL IS BAD FOR ECONOMY

oil plays a vital role in economy of every country, every man knows its worth for running the state because almost every industry needs it, every transportations needs it, but the high prices of oil make a great problem for the nation .A high price of oil will first caused cost-push inflation because oil is used in the production of most of good The increase of oil price may be caused by several factors. One of the factors is decrease in supply or a situation where the supply of oil is decreased due to several factors. This decrease in supply is mainly caused because of the political crisis. GDP has become the standard by which all nations are measured against one another.In our modern world oil prices directly affect a nation’s GDP output. Economic growth demands more oil and, as a result produces a higher GDP figure along with a higher, per barrel price for oil. THANK YOU ASAD AKBAR