The global price of oil has stooped to dramatically low prices as the demand for oil has died and oil companies are trying to get the demand for oil to raise and stimulate the oil trade. If the oil trade gets stimulated then the price of oil will rise making the supply higher than the demand and making more money for oil
Oil-The article”OPEC #1”explains the oil prices.The Oil of the Middle East is the price of oil has fallen by nearly half in just six months.Anyone who buys oil or gas is happy because the prices are low.Car and truck drivers, airlines, and shipping companies are all happy because they don't have to spend as much money on gas. Oil companies are not very happy. They are losing money.A barrel of oil now costs $58 and last summer it was $107.Oil prices have gone down and people are happy,at least some of
The reason of the fall in oil prices are the constant change of demand. The need for the oil is actually stagnant. Crude oil is becoming a product of the past. Today, you can harvest energy from solar, wind, water, heat, and waves. According to The Economist, “The use of fossil fuels in the rich world is mostly falling. Emerging economies are not currently taking up the slack”.
United States domestic production has nearly doubled over the last several years, pushing out oil imports that need to find another home. Saudi, Nigerian and Algerian oil that once was sold in the United States is suddenly competing for Asian markets, and the producers are forced to drop prices. Canadian and Iraqi oil production and exports are rising year after year. Even the Russians, with all their economic problems, manage to keep pumping. There are signs, however, that production is falling in the United States and some other oil-producing countries because of the drop in exploration investments. But the drop in production is not happening fast enough, especially with output from deep waters off the Gulf of Mexico and Canada continuing to build as new projects comes online. On the demand side, the economies of Europe and developing countries are weak and vehicles are becoming more energy-efficient. So demand for fuel is lagging a bit.
Curde Oil price affects on economy is different in different country. In general, low prices are considered good for importers of oil because it not only improves consumer spending but also improves the trade balance of a country. Therefore an increase in oil prices has a considerable negative impact on the GDP growth country which imports oil. Whereas drop in Oil Price is bad for oil exporters as it could put a pessimism in revenues of oil exporting countries where crude exports play an enormously significant role in economic growth. Moshiri &Banihashem (2012) concluded that many oil-exporting countries are heavily dependent on exports from oil revenues, so when oil prices are low, their economies suppress, and when oil prices are high,
Crude oil is one of the most economically mature commodity markets in the world. Even though most crude oil is produced by a relatively small number of companies, and often in remote locations that are very far from the point of consumption but it is shipped all over the world. The global supply and demand determines prices for oil. Events around the world can affect the prices at our home for oil-based energy. OPEC, the large oil-producing cartel, does have the ability to influence world prices, but OPEC 's influence in the world oil market is shrinking rapidly as new supplies in non-OPEC countries such as U.S. are discovered and developed.
The U.S. was supposed to be the world’s new swing oil producer, able to nimbly open and close the taps in response to market forces, thanks to its bounty of shale fields.” In the past a barrel of oil has been one hundred dollars, recently it has dropped to thirty dollars. Though some wells can be profitable at low prices it puts a serious strain on the oil industry as explained in this article.
Over many decades oil has supplied the global market with a realatively inexpensive method to provide energy and countless products. Without oil the world would not be as well developed as it is today. Large countries such as the USA and China thrive off oil and without it would come to abrubt halt. 
Since 2014 crude oil prices fell dramatically by 50% to around $50 US a barrel. This significant price reduction is largely due to a global oversupply of oil and to a lesser degree a reduced demand for oil.
What affect does the price of oil and gas have on the economy? How does this affect the daily lives of the entire population? The preceding questions are the basis for the enclosed report. The primary objective of this report is to give a few reasons as to what causes prices of oil and prices of gas to rise. Among these reasons, speculation of things that may or may not happen, like a terrorist strike, is one of the leading factors. Another reason for the continued rise in prices of oil and gas is the constant growth that China is experiencing in population and energy consumption.
Political events in the Middle East saw Iraq invade Kuwait, as a result oil sanctions were applied to the output of both countries by oil consuming countries. Other oil producing countries feared of a major shortage in supply as prices rose from $18 to $40 a barrel; as a result other non-OPEC countries reacted by increasing production in oil. Prices fell back as overall supply returned to normal. Since the successful counter by the US to retake Kuwait, the price of oil has seen a steady drift downwards in price. This has also led to OPEC losing out due to more countries increasing production in oil; causing an increase in competition.
Since its discovery back in the year 1858 crude oil has been become one of the most sought after resources on the face of the planet. It is due to this fact that the oil industry has fallen into a rather odd category in the case of globalization and seeking out new markets, new labor and new customers. The reason being that the need for crude oil and fuel is always present therefore the product of oil in its basic sense sells itself and the companies do not have to go out and publicly advertise it in the sense that clothing lines and other commodities do. Oil companies must focus more on the matter of why an individual should buy their oil and along with other alternative fuels over their competitors even though in the end the companies
There are many factors within the U.S. that affect the supply of oil such as china’s economy, American shale and elasticity of demand. China is the second largest consumer of oil in the world. In 2013 the united state was bested by china as the largest importer of liquid fuels. China’s consumption will increase in the coming years due to oil prices. “According to the EIA, China is expected to burn through 3 million more barrels per day in 2020 compared to 2012, accounting for about one-quarter of global demand growth over that timeframe” (Nick Cunningham). In 2015 the oil prices were very impacted because china covered up the upsetting fourth quarter. This happened because it caped off its slowest annual growth in over a quarter century. American shale, at the end of 2014 united sate produced more than 9 million barrels of oil per day. As they went down the economy wondered how affected drillers will be. Also they were wondered if they could maintain their outputs due to they fall. Also Rosengren stated “So month to month you can get any result. I think
Until the above said period, the OPEC countries were the main producers of the natural oil and they worked as the cartel and they determined the quantity to be produced based on the market demand and they kept the price at a higher rate and prevented the fall of the price by reducing the production of oil. The introduction of the shale oil made the problem. The higher demand and lower supply of
The oil age has become an age of inequality. The discovery of oil has brought the wealth of a few people, and has brought misery to most people. Many oil rich countries suffer from the distortion of the economic development, the financial instability, the increasing gap between the rich and the poor, the serious