Oil prices volatility and its macroeconomic implications for the MENA region - Economic Research Forum (ERF)

Oil prices volatility and its macroeconomic implications for the MENA region

Oil prices volatility and its macroeconomic implications for the MENA region

Kamiar Mohaddes (University of Cambridge) participated in the second plenary at the ERF 24th Annual Conference. After his presentation, we caught up with him and recorded the short video interview below.

 

 

Dr. Mohaddes argues that the oil market possibly is not entering a new global oil order, meaning that we may not be in a low price environment and we possibly will have much higher uncertainty regarding oil prices. The implication of this is that oil prices may increase and this potentially will put backwards the reforms that countries have been thinking about in a potential lower price environment.

 
Dr. Mohaddes also emphasizes that climate change volatility and uncertainty can be a huge cost to the MENA region, in terms of stranded assets, water and environment crisis, but also in terms of costs on labor productivity, labor supply and sectoral activity.