With oil prices still at record highs, the global economy has struggled to recover and even the biggest oil producers have struggled to maintain production.
The result has been a sharp rise in the price of crude oil, a key commodity used to finance oil exports and is now hovering at its lowest level since 2008.
The International Monetary Fund (IMF) is warning that oil prices could dip below $100 per barrel by the end of the year.
The IMF has warned that a decline in the value of the dollar would hurt the global financial system and drive up inflation.
However, analysts warn that the economic crisis will only deepen the already steep economic downturn, as it does every year.
As oil prices fall, the cost of goods and services will rise.
The US Department of Energy (DOE) predicts that energy prices could increase by $10bn in 2019, with the energy sector accounting for about 70% of US GDP.
“I think the dollar is going to be lower than $100 by the middle of next year,” said Adam Loeb, chief energy economist at the Energy Information Administration (EIA).
“That will be a big drag on the US economy.”
The impact of the oil price slump has been felt across the globe.
A study published last month by the New York Federal Reserve Bank showed that the cost to US consumers of a range of goods, including electricity, gas and food, fell by about a third in the year to March 2019.
“This will be the first time in history that we’ve had a global recession in energy prices,” said Jeffrey Bader, an economist at Wells Fargo.
The energy sector has suffered from a shortage of oil, which is used to fuel the economies of many developing countries.
The shortage has led to soaring prices and shortages in key supplies, such as gasoline and heating oil.
The World Bank estimated that US consumers would have to spend about $1.2 trillion by 2021 to meet their heating and electricity needs.
“The costs of living and goods prices are going to rise substantially,” said Loeb.
“You can see that by looking at prices in China, where the cost is going up by 25%, and in India where the price is going through the roof.”
Some analysts are warning that the impact of this will be felt in Europe, where energy prices have been falling for years, and Japan, where they have dropped dramatically.
In China, the impact is particularly pronounced.
“When prices are down, there is less demand for energy, so energy consumption goes down,” said Professor Matthew Stiglitz, chief economist at Columbia University.
“It’s going to have a profound impact on the global economic outlook.”
The IMF predicts that US economic output could be halved in the next five years as the economy struggles to regain competitiveness and meet the rising demand for more energy.
The global economic crisis has had a significant impact on global growth, according to a report by the International Monetary Organization (IMO) published last week.
The report noted that the US is one of the world leaders in terms of the proportion of its GDP that is derived from energy, and that the global impact of US energy consumption has been especially severe in the past decade.
The problem is that the growth of energy consumption is a matter of economic opportunity, not a problem of social or political choice, the report said.
“In other words, the growth in energy use and production has been driven by an expansion of opportunities for energy companies to profit from this growth, which has made energy production more efficient and competitive,” the report noted.
“For this reason, energy consumption growth has been the fastest in the G7, and the G20 has followed the US and Germany in the trend of declining energy use.”
However, the IMF warned that the drop in oil prices has not helped the economies in the Middle East and Africa.
In the past year, the oil and gas sector has been hit particularly hard by the global downturn, particularly in the region.
The Middle East has been one of Asia’s fastest-growing regions in recent years, growing by almost 3% annually.
In recent years oil prices have also been a major driver for the region’s economic growth.
But the drop from $100 to $50 per barrel has meant that energy consumption in the country has fallen by an average of 6% annually since 2015.
“Oil production is now less important than it was a year ago,” said Sami El-Shater, a senior energy analyst at the Middle Eastern oil company Sinopec.
That is not good news.”