World Bank: Cheap oil may lead to lower prices for gas and coal
If the current slump in price of oil continues, the prices of natural gas and coal will also fall, the World Bank's Vice President for East Asia and Pacific Axel van Trotsenburg said on Monday in an interview with Japanese newspaper Yomiuri.
According to Trotsenburg, the current decline in oil prices is on the whole an advantage for global economy.
"The world mainly consists of oil-importing countries. Thinking in terms of the global economy, the reduction in [energy] prices will have a beneficial effect on it," he said.
"The released funds will be spent on infrastructure projects and the more active solution of social problems," Trotsenburg said.
"Now we can talk about a major change in the system of prices for all energy sources. If the current situation continues, the reduction in price of oil will also affect the prices for natural gas and coal," he said.