Supply And Demand Of Oil Prices Essay

1136 Words Nov 29th, 2015 null Page
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 period. Under the new supply and demand, the global economy is fluctuating.
Despite in the appearance, the countries producing and exporting oil are discomforted. Observers and analysts exclude that; OPEC will turn to cut production sooner. The oil market recorded that; countries continue pumping a lot of oil. That it illustrated in the Middle East.
Supply has increased so much for some reasons. America increased production in the market, which reached a large extent. It reached 9.4 million barrels per day. The US oil industry continues to increase the production in the last four months. US commercial stocks of oil also reached a limit that had never reached 80 years ago.
According to the U.S. Energy Information Administration, United…

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