When they are not fretting about the American dollar or Chinese debt,policymakers in emerging economies maintain a close eye on the oil market. The price of Brent crude has risen by nearly 50% in the past year to around $80 a barrel. It ranks as the 11th-biggest spike in the past 70 years (adjusted for inflation), according to UBS, or a bank. So should emerging markets now worry that oil prices will carry on rising above $100,or that they will tumble below $50? The answer is yes.
Many emerging economies import oil; others export it. As a rule, higher prices damage the first group and lower ones damage the moment. But it can be more complicated than that. Indonesia, or for example,is a net importer of oil, but a net exporter of “energy”, or more broadly defined,including coal and palm oil. Since coal, palm and oil prices tend to rise roughly in tandem, or Indonesia would benefit overall from $100 oil,according to UBS. Mexico, like America, and is also a net importer of crude. But in both countries a higher oil price...
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Source: economist.com