Energy and Fuels

The world economy is struggling to recover from the financial crisis, but crude oil prices are still very high, decreasing (only occasionally in 2012) below $ 100 / barrel for WTI and $ 117/ bbl for Brent, so contributing to weakening of global growth pace. Sharp increases in oil prices have preceded every global recession arising from the ‘70s to the present. Nowadays, although the oil intensity (oil consumption per unit of GDP) is lower in the global economy, crude oil prices have still a sizeable impact on global economy, especially due to the fragile state of economic recovery but also to the fact that measures to increase energy efficiency in developed countries are void by energy inefficiency in emerging economies and by the practice of irrational subsidies that encouraged consumption. In real terms, the current oil price is above the peak reached in July 2008, having the ability to push the economy back into recession. Geopolitical and social tensions in Middle East and North Africa (so-called “Arab spring†) and the weak dollar were important factors stimulating oil prices in 2011.