P/E/334. Dissertation. Are fluctuations in oil prices connected to macro economy?

The paper investigates the fluctuations in oil prices over the past 30 years relating them to the economy of the UK. Activities of the Organisation of Petroleum Exporting Countries (OPEC) are discussed; an extensive review of literature on the relationship between oil prices and macroeconomic factors is offered. The variables affecting this relationship are studied including the rate of interest, the GDP, unemployment rate, etc. Conclusions are made about the correlation between the periods of major change in oil prices and major political and economic events.