Regression analysis of oil price return

In 2016, the crude oil price movement prices were unpredictable. The OPEC reference basket dropped 10 percent to $43.22 per pound. The ICE Brent and NYMEX WTI both went down by 8.4 percent with ICE Brent at $47.08 per pound and NYMEX WTI at $45.76 per pound. This showed that there were uncertainties in the petroleum market. The future prices were predicted for 2017 that it would move higher. The World’s economic growth predictions was the same at 2.9% for 2016 but increased to 3.1% for 2017. Because of the 3rd quarter of 2016 in Japan and US, the OCED growth went from 1.6% to 1.7%. The demand for oil growth in 2016 has been increasing slightly to 1.24 mb/d. In 2017, the demand will be predicted with a decrease to 1.15 mb/d. OECD will

The United States consumes more than 25% of the world’s petroleum products which is a large percentage, considering only 3% of the world’s oil reserves are produced by the United States. Given the demand for petroleum products such as gasoline, understanding why Crude oil prices have skyrocketed in recent years, is not hard. According to the article “Ending America’s Oil Addiction,” the surge in crude oil prices can be reduced in large part to the simple concepts of supply and demand. (Cooper, 2008)

The U.S. was supposed to be the world’s new swing oil producer, able to nimbly open and close the taps in response to market forces, thanks to its bounty of shale fields.” In the past a barrel of oil has been one hundred dollars, recently it has dropped to thirty dollars. Though some wells can be profitable at low prices it puts a serious strain on the oil industry as explained in this article.

Within the last year, oil prices in the United States have dropped significantly. As oil drilling in the United States has reached its highest level in over 30 years, consumers are reaping the benefits. Among these gains are record-low prices at the pump, and cheaper oil to heat homes. However, oil prices did not just drop on their own; multiple factors contributed to the fall. Increased domestic production, declining global demand, and competition from other oil-producing nations had led to rapidly dropping oil prices across the United States.

From 2014, the crude oil price has dropped in a sudden since the global economic downturn, oversupply of crude oil and the appearance of new energy. Global economy fatigued, and thus the demand of crude oil was not strong,

For example, the Intercontinental Exchange while oil prices have not been decided on by oil producers such as Niami refinery fires, Nigerian Pirates and global oil markets. The laws of demand and supply are also predicted by the increase and decrease in the prices of oil. Oil prices are driven by the increase in demand for oil which has limited or completely destroyed the gains for suppliers and producers. While the U.S still consumes more oil than any other country, it is evident from the increase in oil demand that developing countries such as China, India and Japan are driving oil prices higher by their continous growth in oil demand (Anderson, 1).

Oil prices affect most American's daily lives. Whether it is used to fuel your car, a plane, to heat your home, or even if it is just used inside products, like plastic that we use daily, oil plays a role in all of our lives. Last year, in 2015, an extreme decline in gas prices swept the United States. For example, oil prices have decreased to less than $30 a barrel which is the lowest it has ever been in 12 years. There are many factors that can contribute to this sudden decline in gas prices, but their are three that are the most relevant. These include, the recent advancements in other fuel sources, the changes in the leading oil suppliers of the world, and the simple economic concept of supply and demand. These three ideas are all important in contributing to the fall of gas prices.

This research paper provides an overview on why there is oil price falling in the United States. It will examine the reasons that are influencing fall of oil prices. Additionally, the paper will seek to explore the effects caused by the fall of oil prices in the American’s economy.

From tornado results at all fields, oil price is a dominant factor affecting NPV and GT values. Hence, from both government and investors view, oil price fluctuation is a crucial thing to consider.

Fuel costs can change rapidly, making it difficult for consumers to adjust to the system. In fact, the petroleum industry is one of the

different industries. Despite the increasing global oil demand [5], Canadian oil has been trading at a

The industry is highly competitive and typically have thin profit margin and is very sensitive to volatility of crude oil price and general economy condition in terms of revenue and profitability. As the crude oil price is projected to increase in the next five years, this could potentially have positive impact on company revenue, yet due to the lag between the movement of crude oil price and that of the gasoline, as well as the ability of the company to

Exxon and Chevron are no doubt some of the leading incorporated oil companies on the globe. Exxon Corp. is the second largest oil firm after Royal Dutch Shell, it is respected for getting the biggest revenue return in 2008 which no company in the U.S. have ever reported before. According to Wilson (2009) Chevron has managed to show a lot of profitability in the market despite the decease in its oil production. It graded as one of firms which made a billion dollars profit within a week in the period of July to September 2008. Regardless of profitability trends set by the two oil firms in the U.S. market, they have been facing financial decline like the rest of the companies in other industries. The two firms are like two sailing ships which are taking longer time to sink. In the last few years, the production capacity of Chevron and Exxon has decreased and their listings on the stock market have become weak. The continuation of construction and drilling which requires billions of dollars in expense of oil production might make them experience a bigger financial crisis (Wilson, 2009).

In the last ten years, gasoline prices have been increasing in Canada. Consumer spending on gasoline holds a large amount of total household expenditures. In 2009, the Consumer Price Index (CPI) calculated on average that Canadians spent about six percent of their total household budget on gasoline (Statistics Canada, 2013). Therefore, gasoline prices changes on consumer price inflation. In order to make gasoline, crude oil and refineries are required. When examined, gasoline and crude oil are two different commodities that can change through different market factors (Pump Talk, 2008). As these factors take place, the costs are added towards the price of gasoline. Even though Canada is a large net exporter of crude oil and owns almost half

5.4 RESULTS AND DISCUSSION Firstly, the data on oil prices is taken from Multi Commodity Exchange of India (MCX). The time period of the data is from 2011 to 2013 as this was a period of high volatility in oil prices and Multi Commodity Exchange of India (MCX) commenced trading in crude oil futures on February 9, 2005. The dataset includes crude oil spot prices. MCX is a demutualised commodity exchange with permanent recognition from the