Oil Price Essay

1136 Words 5 Pages
These days, oil prices have reached the lowest level in the last decade. Even more than the lowest price recorded in the global financial crisis since 2009. Oil price per barrel dropped from $100 to $40 by 2015. This price is the bright side for importer, and the dark side for exporters. Especially to the countries that depend on oil in the national income. It is true that, the oil price linked to supply and demand. But what made supply and demand makes that much of changes in the price?
According to the Federal Reserve Bank of St. Louis, oil price has dropped. It reached $46.49 in the fourth quarter of 2015, while it was $98 in the same month last year before declining. This situation expected estimates this price to continue for a small
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According to the International Energy Agency, The world oil supply will goes up. It will be 96.67 million barrels per day, more than now as 95.17. Unless if there is an increase in the world demand. Abdullah Alhassan f finance specialist at the Al Jazeera bank from Saudi Arabia said about the price. "The oil price between 40$ to $60 is a regular oil price. The last ten years price was unreasonable. I believe that the price should not go below $40 to cover the costs and the country needs. Also $60 per barrel meets a profit." With regard to the prices in future said. "Current price will make a snap contract from some countries. Followed to be more demand while other countries will reduce exporting. In this case, the demand will back more than the supply to return the price up."
ِAlso, production in countries that were through turbulent such as Iraq, is returning. Not to forget Venezuela when it gets the first rank as largest oil reserves in the world. According to the Organization of the Petroleum Exporting Countries mentioned in
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"Since the oil prices declined, analysts trying to explain this decline to political interpretation. This interpretation launches from Thomas Friedman 's writer at the New York Time." he said. The article is war Pumps, October 14. "Friedman built an analysis on an assumption. It 's assumed that there is an agreement between the United States and Saudi Arabia to cut oil prices. The assumption is to defiance Moscow and Tehran! Even when the writer said I am not sure that this alliance intentional or by accident."
Alromaihe objected the idea from some reasons "Thomas Friedman presents an analysis. He did not write a documented story. There is a tendency to believe any assumption in newspapers as an undeniable fact. Once the idea launched, it being demonstrative between Middle East writers to approve they believes! In the other hand, the United States, and Saudi Arabia did not deny it because of the lack of

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