Article Summary : Global Oil Demand

1338 Words Oct 4th, 2015 6 Pages
1.0 Article Summary

The article Global Oil demand to slow in 2016: IEA discusses demand of oil will slow in 2016 although oil prices had been fell to the lowest point in past three months. Fell of oil prices is caused by oil company keep raising the supply and not helped Greece and China to settle their financial chaos which may make a unsettled world markets. Oil prices fell from 60% in the earlier year and the demand will decrease to 1.2million barrels from 1.4mb/d this year. However, there is a peak in the first three-month of 2015 which is at 1.8mb/d. Although oil prices had fell but Organization of Petroleum-Exporting Countries (OPEC) had not decided to cut their oil production as it seen as a strategy for OPEC to defend their market and put pressure on U.S. oil producer. (Ellyatt 2015)

2.0 Introduction

The aim of this is essay is to apply the economic theories while look into and analyzed the oil market. Demand and supply issues will be analysis and how it can effect buyers, sellers, government and the country. This essay also cover on how much price elasticity do oil has and how much total revenue that oil will bring in.

3.0 Article Analysis

3.1 Demand and supply of Oil

3.1.1 Demand of oil
A demand curve shows the relationship of the quantity demanded and price of the good when the other factors that affect consumer purchase remain same and stable (Curtin University 2015). Base on the law of demand, when product prices fall, the quantity demanded increases; when…
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