Christopher Allsopp, Oxford Institute for Energy Studies.   Currently oil and other commodity prices, volatility, and the international financial crisis are all impacting on the world economy, challenging the idea of continued growth. These issues and their interrelationships to oil, energy markets and the challenges this poses for the energy sector are discussed. Oil prices, volatility and shocks are examined from a global perspective linking to fundamentals, short term positions, OPEC reactions and conflicting agendas (such as security and climate change). These and other issues make the interactions between oil markets and the world economy complex and a straightforward policy response, within international energy markets, difficult.

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