Any benefits derived from increase in the future for oil based products were limited by the increase in price of food-related imports, making it possible for the countries to ward-off the effects of the crisis. However, in spite of the fact that the demand for fuel is inelastic, food is a basic need and expenditure on food cannot be substituted for anything else.
As a result, when the global consumer and producer became unable to afford oil products, the demand for oil was bound to drop as the remaining disposable income was channeled towards consumption. Consequently, as long as the prices of futures for oil remain below those of food-related products, the economic growth in the Middle East was bound to be curtailed owing to the insufficient of the exports to cover imports.
Demand for oil across the globe has been fluctuating over the years. However, there is a significant rise in demand over the boom period. In the period prior to 2008, the general change in the demand for energy products was in an increase. However, as indicated in the diagram, changes in the demand for oil between July 2008 and February 2009 indicated a sharp drop from over 90 million barrels a day to just over 80 million barrels a day. This drop in demand for oil within such a short period of time is capable of destabilizing the economic progress in a region, with the rest of the globe following suit. However, in the case of 2009, the order was reversed owing to the huge gains accrued to the oil exporters during the boom period. Growth projections as indicated in the following diagram indicated that the region was bound to experience a slump in growth which was less severe as compared to the rest of the world.
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