Demand And Supply Of Oil Prices

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Introduction Crude Oil Industry is central to United State, its future and the world economy. Demand and Supply fundamentals have traditionally determined the price of crude oil. New price drivers have emerged with time. Complexity is on an increase in the oil market, having impact on the oil prices with a variety of factors. The fluctuation of oil price has reached an unprecedented level, with the world crude oil price widely swinging per barrel over the months. The prices reflect the crude oil price swings paid by customers for gasoline, furnace oil and diesel. Crude oil has its importance to United Stated and the world, the industries, governments and the public interested in knowing why there is a fluctuation in the oil prices (Plaut,…show more content…
The following are the factors that identify and briefly explain the crude oil price changes in United States: 1. Repeal of the Glass- Stea gall Act and Financialization of the Oil Markets The United State, Glass-Steagall Act repeal of November 1999, other institutional investors such as investments banks and hedge funds and the banks in general, in the risk investments increasingly participation such as gasoline future markets and crude oil. According to many analysts, crude oil future new market has crude oil price significant impact. 2. The Asian Oil Demand The most contributing dominant factor to the crude oil was the sharp rise prices after year 2000 in oil demand from China and the other developing Asian nations. China and the other Asia demand, that account to most crude oil global growth demand and about forty percent of growth over the year. 3. Oil Price Subsidies International Monetary Fund of the forty two developing and emerging countries market survey including India, China and Middle East had finding that less than the half full passed world higher oil prices thought to retain customers. The incentive reduced subsidization to the contribution and conservation to the price rise by oil demand sustainability in the crude oil price relative face. The retail price of diesel in many countries, a crude oil refined product, the crude oil used in making the diesel is less than its actual price. 4. The Declining Value of the U.S Dollar Change in
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