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Working Paper 93 - The Impact of High Oil Prices on African Economies
While a barrel of crude oil was trading between $18 and $23 in the 1990s it crossed the $40 mark in 2004 and traded at around $60 from 2005. During the summer and fall of 2007, the price of one barrel of crude oil jumped above the $70 mark and even reached $80. Although, in real terms, the price of oil is still lower than in the late 1970s and early 1980s, the recent upsurge can have dramatic consequences on oil-importing countries. The impact of high oil prices is likely to be even more severe in countries that are overly dependent on oil and/or have limited access to international capital markets. This description characterizes many African economies.