Crude Oil Last 10 Years

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The role of petroleum products in our lives is unquestionable. It is safe to say that oil is the cornerstone of our civilization. A pessimist might argue that without oil our industrial society will collapse and there will be rapid decline in the world population. But again that is a pessimist’s view, personally we would like to think that we will in near future find other energy sources on which we can depend and build our civilization to reach the next milestone.
In this report we have tried to highlight the fluctuations of crude oil during the period of 2001-10. The scope of this report is limited only to this period as we believe that events that took place during this decade had the potential to change the oil game so
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Thus the oil market participants – producers, refiners, marketers, and traders – would not have one of their bases for setting prices in their contracts and other transactions. It does not appear that the oil industry was materially affected by the closing of the Nymex, which, in any event, resumed all operations in about one week. While the immediate effect of the attacks on petroleum markets was to drive prices up, market forces – reflecting little change in supply and demand – acted quickly, and crude oil prices eased within little more than a week. Average crude oil prices paid by U.S. refiners actually declined for the month of September 2001 – falling to $20.82 per barrel from $24.08 in the previous month.

After moving lower in 2001, crude oil prices moved higher in 2002 reaching over $30 per barrel in September 2002. Higher prices were supported by a number of factors. One was the ongoing U.S. war on terrorism and rising tensions with Iraq. There was the likely potential that military action would be taken against Iraq that would disrupt the supply of crude oil to the market. With that issue still not settled as 2002 drew to a close, crude oil prices continued to find support.
While there were factors supporting higher prices, there were also factors working against them. The Organization of Petroleum Exporting Countries (OPEC) after a meeting in 2001 agreed that production of oil would be cut. The
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