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Rise in Oil Price Won't Trigger Third "Oil Crisis" : Chinese Economists
The continuing increase in the global price of oil is unlikely to trigger a third "oil crisis", according to Chinese economists in a book, soon to be published.
The Book, titled "2000-2001: World Economy Analyses and Predictions" also known as "World Economy Yellow Paper", is an annual economic report co-written by a group of authoritative Chinese economists.
The surge in the price of oil is one of the focuses of the book,which says that the oil price has become the hottest issue in the current world economy and deserves serious attention.
Unlike the previous two oil crises, the recent rise in the price of oil is attributed to an imbalance between oil demand and supply that can be regulated through market forces, and therefore the price will again return to normal levels, say the economists in the book.
In addition, it is noted in the book that due to the rapid development of hi-tech industries, Western developed countries have shifted their focus from manufacturing industries to telecommunications, computers, and the Internet, which consume much less oil than the former, and thus their economies rely on oil less than they used to. The impact of the recent rise in the oil price is no match for the rises of the previous two oil crises, the economists add.
The economists estimate that the global oil price will decrease in 2001, while also pointing out that the impact of the oil price increase serves as another warning for every country, especially developing countries, to improve their energy efficiency and optimize the structure of energy resources.
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