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Cheap oil and global growth

Falling oil prices are rooted in Middle East geopolitics, not wilting Chinese demand, and one can fully expect global growth to get a boost from cheap oil.

With the world burning 34 billion barrels of oil a year, a US$10 fall in its price will shift US$340 billion from oil producers to consumers, providing an income boost.

VIOLENT swings in oil prices are destabilising economies and financial markets worldwide. When the oil price halved last year from US$110 to US$55 a barrel, the cause was obvious: Saudi Arabia's decision to increase its share of the global oil market by expanding production. But what accounts...

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