The Impact of Rising Oil Prices on Agricultural Products

Abstract

Fluctuations in the price of oil have increased the cost of production all over the world, putting several industries in difficulty. One of the most important pillars of economy is agriculture, due to its crucial role and ability to grow food and sustain life. The purpose of this article is to observe the influence of the price of oil on the level of agricultural production in Romania. Using the Least Squares method was established the direct and positive influence of oil price over cereal production in Romania. The main conclusion reached by this article is the major impact that the price of oil has on agricultural products in Romania suggesting the importance of the policy that cap the price of oil and allowances to reduce the agricultural production cost.

Keywords

• price of oil
• agricultural products
• agriculture sector.