Oil And Demand For Oil

1174 WordsOct 14, 20165 Pages
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. DISCUSSION There are various factors which are currently driving the world demand for oil which are as under along with the explanation about how they caused oil prices to drop:  OPEC (The Organization of Petroleum Exporting Countries): OPEC, a consortium of 13 countries it is the single largest entity impacting the world’s oil supplies. It is responsible for 40% of the world’s oil production, and sets policies among member countries to meet global consumption. OPEC can affect the price of crude oil, by increasing or reducing production among member countries. But unwilling to stabilize the oil market, the OPEC nations which is the cartel of oil production, led to sharp price drop of crude oil. Price of OPEC benchmark crude oil have fallen 50% since the organisation has decided against cutting production at a 2014 meeting in Vienna. If

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