According to IEA, worldwide expenditure on oil accounted for almost 5% of global GDP in 2011. An “oil burden” (i.e. oil demand multiplied by the oil price divided by the nominal GDP) of 5% has been a critical value for the economy, historically speaking. At an average price of USD 150/barrel the share would amount to 7.5% in terms of GDP.
Oil price burden (% of GDP) vs. inflation-adjusted oil price 1970-2011
Sources: IEA, Datastream, OECD, Bloomberg, Erste Group Research
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