The Determinants of the Rise in Oil Prices in Morocco

Abstract

This article aims to analyze the influence of inflation and gross domestic product on the price of oil over an annual period of 17 years, from 2004 to 2021. Based on appropriate econometric model, the study aims to purpose of analyzing the impact of fluctuations in inflation and gross domestic product on the price of oil. We will examine the various factors that have influenced the increase in the price of oil in Morocco, such as the growing demand and the external factors that contribute to an imbalance of supply and demand. We will also assess how this inflation affects household and business consumption in Morocco as well as the measures that can be taken to reduce the negative effects of this inflation and the indirect effects of oil price shocks on Moroccan economic growth. Indeed, empirical contributions confirm the existence of direct and indirect effects of oil price shocks on economic growth. The direct impact was studied through the non-linear effect associated with a sharp rise in oil prices on economic growth.