Instability of international oil prices and its impact on the mexican economy

Abstract

Petroleum is a non-renewable natural resource, its fundamental property is its use as an energy generator; it plays an important role in economic activity, it is a commodity that is used directly or indirectly in the production of a wide range of goods. Crude oil is made up of various fractions that must be separated for its use, for this purpose it is subjected to a transformation process from which products such as: light and heavy gasoline, gas-oil, fuel-oil, heavy oils, bitumen, etc. are obtained,chemical products (petrochemical products), etc.
Therefore, variations in the international price of oil, especially the sharp increases observed in the periods 1973-1974, 1979-1980, and recently in the year 2000, affect all countries to a greater or lesser extent; the impacts are different, depending on whether the country is a net oil importer or exporter. Obviously, the most affected countries are the developing importing countries, which have fewer financial resources.