The Effects of Increasing Oil’s Price over Romanian Trade

Abstract

The accelerated increase in oil price has brought to the forefront the vulnerabilities of the Romanian economy in the face of global energy shocks. Because Romania is dependent on oil imports, trade is massively affected by increasing of the price of oil’s barrel. The economic effects begin with the increase in the cost of transporting goods, continue with their logistics and distribution. In the same time, production costs increase in certain sectors of the economy, oil being an essential raw material for the chemical industry, for the production of plastics and for packaging. Ultimately, all of this is reflected in the selling price of products and services that impact in economy with a boomerang effect between companies and consumers.

This study explores how increasing the oil’s price affects romanian trade, by using empirical data and statistical analysis. In addition, the study provides valuable insights for companies, investors and decision makers in managing challanging situations generated by increasing of oil’s price