REVIEW RELATED LITERATURE

By Greg Mcfarlane (2022) Oil is the crown jewel of commodities used in a

multitude of ways, from plastics to asphalt to fuel. The oil industry is an economic
powerhouse, and changes in oil prices are closely watched by governments,
corporations, investors, and traders.

Volatile oil prices can send shockwaves throughout the global economy.
Changes in the production and consumption of oil also drive prices. However, oil
is not a diamond or caviar—luxury items of limited utility that most can live
without. Oil is abundant and in great demand, making its price primarily a function
of market forces.

By Scott L. Montgomery(2022) The world is in the grip of an oil price

shock. In just a few months, prices have risen from US$65 a barrel to over $130,
causing fuel costs to surge, inflationary pressure to rise and consumer tempers to
flare. Even before Russia’s invasion of Ukraine, prices were climbing rapidly
because of roaring demand and limited supply growth.

Price shocks aren’t new. Viewed historically, they are an integral part of oil
market dynamics, not anomalies. They have occurred since the birth of the
industry.

Many factors can trigger oil price shocks. They include large shifts in either
demand or supply anywhere in the world, since oil is a global commodity. Shocks
can also result from war and revolution; periods of rapid economic growth in major
importing nations; and domestic problems in supplier countries, such as political
conflict or lack of investment in the oil industry. Overall, the worst spikes have
combined two or more of these factors – and that’s the situation today.
 By Rabah Arezki and Olivier Blanchard Oil prices have plunged recently,
affecting everyone: producers, exporters, governments, and consumers. Overall,
we see this as a shot in the arm for the global economy. Bearing in mind that our
simulations do not represent a forecast of the state of the global economy.

By Chen Aizhu and Florence Tan(2022) The United States, Britain and
some other key oil buyers banned imports of Russian oil shortly after the invasion.
The European Union is finalizing a further round of sanctions, including a ban on
Russian oil purchases. Many European refiners have already stopped buying from
Russia for fear of running afoul of sanctions or drawing negative publicity.

The College Editors Guild of the Philippines (CEGP) and its official
publication, The National Guilder (TNG), demand the DOE and the Duterte
administration to resist measures on the oil price increase and as much as possible,
envelope economic policies situated within the struggles of the Filipino people.
Clearly on a long-run scale, resorting solely to price increases is unsustainable and
may trigger economic depression.

In line with the decision of the Department of Trade and Industry (DTI) in
increasing price increments for basic goods, such as bread and canned goods, the
Guild and TNG remain steadfast that permitting oil price hike will further crucify
the masses caged in the wiles of the current pandemic crisis.

Now more than ever, the Guild calls on the alliance campus publications and
the Filipino youth to amplify the demands for mass-oriented economic policies and
contest anti-poor measures, such as sudden increases on basic goods and services.
In these times of uncertainty, economics should work and shift in the demands of
the down-under.