There are some concerns over the Middle East oil supplies as Saudi Arabia and allies intensified their bombing of Yemen, targeting Houthi strongholds. There is a crucial strait on Yemen’s southern coast, which controls access to the Suez Canal, the Red Sea and ports of westerns Saudi Arabia. Investors are also betting U.S. crude output will be further reduced. The drastic drop in oil prices has impacted the global economic landscape.
The Conference Board has published a report examining this and looking at the effects of the moves in oil prices over the next six months. CCTV America’s Michelle Makori interviewed Bart van Ark, The Conference Board’s Chief Economist and a co-author of the report, titled ‘Getting a Handle on Energy: Global Growth Scenarios in Times of Changing Oil Prices’. He was asked why the report says the positive impacts of oil’s downward trajectory have largely played out.