The average crude oil price was at its peak in 2012 sold at US$109.45 per barrel and since then was on a downward trend.
Regarding the above statement, determine the reasons for the downward trend of the crude oil price and with the use of suitable economic models and theories to examine and explain the possible impact of the falling crude oil price on Malaysia’s key macroeconomic variables.
Structure
Maximum words limit
Explain the importance of crude oil prices to oil-importing and exporting nations.
Provide the average crude oil price from 2012 to 2018 and explain the factors causing the fall of the crude oil price over the given years.
Use suitable economic models and theories to discuss the possible impact of the declining crude oil price on Malaysia’s key macroeconomic variable
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