OIL PRICE VOLATILITY: CAUSES, CONSEQUENCES, AND REMEDIES

This article analyzes why unplanned disruptions of world oil supplies hurt the world economy In the past, relatively small outages have caused large oil price spikes that rippled through economies and caused long-lasting harm, slashing worldwide economic growth, and causing a recession in OECD countries. Strategic oil reserves that can replace lost oil supplies, are the only effective defense system against oil supply disruptions. Turkey is also vulnerable to these disruptions due to its oil import dependence and its significant motor vehicle and export markets. This article provides recommendations to avoid such disruptions in the future.