Economics Assignment : Lachlan Milligan

1632 Words7 Pages
ECONOMICS ASSIGNMENT Lachlan Milligan Ever since 2014 crude oil prices have been decreasing dramatically, this has contributed to various global economic issues that has the potential to destabilise the economy.There are various factors which contribute towards these issues where the result has a negative effect on Australian industries. In order to prevent the ever decreasing crude oil prices, the Australian government needs to implement new policies and legislation which could assist to mitigate the impact of fluctuating oil prices within the economy. By doing so, there would be a positive effect on the Australian economy which could help restabilise the global economic situation. Part A Graph 1 (Deloitte, 2016), Oil suppliers versus Oil prices History of Crude Oil Price Graph 1 represents the major companies and nations which product crude oil. It also represents how the bent crude oil price has fluctuated from 2004 until 2014. From 2004-2008 it is evident that there is a steady rise in oil prices, from $35-$150 per barrel. Towards the end of 2008 it is evident that there is a significant drop in oil prices, from $150- $32 per barrel. This is due to the Global Financial Crisis (GFC) where the stock market collapsed on October 28, 1928, through this came the rapid decrease in oil prices. From 2009-2011 there is a steady increase in oil prices which was caused by the stock market repairing itself from impact of the GFC. In 2013 we are able to see declining oil

More about Economics Assignment : Lachlan Milligan

Get Access