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Economic Issues Independent Research Assignment

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Year 10 Commerce Economic Issues Independent Research Assignment Cover sheet Submitted by: Alex Dicembre Word Count: 938 Contents page Executive summary This report will consist of the causes and consequences of the changing price of WTI crude oil and recent trends in the global price of oil. It will also include the effects of the ever-changing price of oil on individuals, business firms, governments and the economy. Data Price per barrel The price per barrel for oil has substantially fluctuated over the years, but in this current year of 2015 it has been kept to a reasonably low price. The price of crude oil WTI on the 21st of February 2015 is $50.34 US a barrel as…show more content…
In the early stages when WTI oil was first becoming useful the price was at an all time low of just $15.01 US per barrel back in January 1946. The price of oil had its first major spike in January 1974 when the price jumped from $22.44 US to $50.30 US per barrel, which was an impactful price change as money was not in high quantities. When the price climbed and reached $114.51 US per barrel in April 1980 the demand for oil dropped as people did not have to the money to afford petroleum, which caused a downfall in price to $27.23 US per barrel. Causes Causes for changing prices The causes for WTI crude oil and its price changes are all about supply and demand. If consumers are trying to cut down on there use of oil because it is getting to expensive then the supply is higher then the demand therefor the price of oil will go down to try and get consumers to buy more oil and stimulate the oil trade. If a large amount of people are demanding oil and the supply cannot keep up with the demand then the demand is higher than the supply therefor the price will go up to slow down the trading of oil. Why it has changed 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
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