Supply And Demand Of Oil Prices Essay
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…