Oil Price Essay

Decent Essays
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 $98 in the same month last year before declining. This situation expected estimates this price to continue for a small
…show more content…
According to the International Energy Agency, The world oil supply will goes up. It will be 96.67 million barrels per day, more than now as 95.17. Unless if there is an increase in the world demand. Abdullah Alhassan f finance specialist at the Al Jazeera bank from Saudi Arabia said about the price. "The oil price between 40$ 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
…show more content…
"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

Related Documents

  • Improved Essays

    There is also added competion in the oil market as Saudi and Nigerian oil are now competing against the USA and Canada causing the price of oil to drop. Recently in Canada the oil production was suddenly seized as forest fires destroyed the region where the oil sands were located. These played some parts into the drop of oil prices when it comes to the supply portion. When it comes down to it, its simple economics there is too much oil but little demand. While it all looks bad there are some benifets that come with the low oil prices,…

    • 1135 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    Born in New York on June 14th, 1946, Donald Trump is a world famous, republican businessman who is well known by the media as being a considerably outspoken man, who isn’t afraid to voice his opinion about any issue, no matter how ridiculous his opinion may be. He is no different in his book, Time to Get Tough- Making America #1 Again. Throughout his book, Donald Trump makes sure to mention, numerous times, that President Obama has failed the United States, and provides suggestions that he believes will fix America and the problems President Obama has created.…

    • 1377 Words
    • 6 Pages
    Improved Essays
  • Improved Essays

    OPEC, or the Organization of Petroleum Exporting Countries, is a group of 12 countries that produce oil. These groups get together and decide on the prices of crude oil (DiLallo, 2016). OPEC is struggling because now, more countries are focusing on using their own crude oil as well as finding alternatives to gasoline. This creates a problem for OPEC so they lower their prices not because they want too, but because if they don’t, they will lose the market share they have of the world’s oil and will not make nearly any money at all. OPEC struggles with losing their market share also because of the slow transition to more fuel-efficient vehicles and transportation.…

    • 915 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    John D. Rockefeller was considered one of the first major philanthropists and entrepreneurs of the United States. He created the Standard Oil Company and from then, he revolutionized refinery production. It is important to analyze and study the methods he used and the period of time he used them in. The time period plays a major role because there was no industries being established around 1865 and yet Rockefeller managed to gain about ninety percent of the nations capacity of the refinery industry.…

    • 539 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    Economics Essay Outline Introduction: The world’s economy is heavily affected by the price of oil. Economic growth, especially in developing countries, is dependent on oil, the demand from those nations is gradually increasing and for developed countries such as Canada to maintain their economic growth switching to electric cars is imperative. Ending Canada’s economic dependence on oil is undoubtedly going to benefit the economy. Thesis: Switching to electric cars will provide new jobs, more revenue, and advance technology which will directly improve the Canadian economy.…

    • 1316 Words
    • 6 Pages
    Improved Essays
  • Improved Essays

    “Without the U.S. oil production boom, it is predicted that oil prices would be around $150 a barrel, rather than $100 per barrel. If this estimate is correct, the United States is saving the global economy about $4.9 billion a day in oil spending. ” (Quartz) . . . . . . . . . . . ….. . . . . . . . .…

    • 607 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    During an economic recession, the world activity reduces causing the oil demand to reduce. The current oil price decline is not a cause of a decline in oil demand instead it is driven by an increase in supply. Due to the fracking technology oil production in the United States and Canada is surpassing production in Saudi Arabia.…

    • 781 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Oil Fracking Benefits

    • 912 Words
    • 4 Pages

    After that, oil prices started to free-fall and as of March 12, 2015 oil was trading around $58 per barrel (Mirzayev, 2015). This can hurt or help the country the oil is being bought from. Most of the imports currently come from five countries: Canada, Saudi Arabia, Mexico, Venezuela and Nigeria (Flintoff, 2012). So as of now the price of oil is hurting Saudi Arabia as far as its economy.…

    • 912 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    EDF economist Gernot Wagner explained why drilling won’t lead to lower oil and gas prices. What’s mainly driving high oil prices today, he said, is increasing demands. And the increase, in large parts, is due to newly mobile millions around the world who have been lifted out of poverty in the last few decades. DOE predicts that world oil demand between 2010 and 2015 will increase by…

    • 427 Words
    • 2 Pages
    Improved Essays
  • Great Essays

    Embargo's Energy Crisis

    • 1351 Words
    • 6 Pages

    The World witnessed a struggle for the control of oil in 1973, the decisions of which ultimately lead to globalization. As America saw the pace of life quicken in the twentieth century with the use of cars, planes, airplanes and appliances, the demand for oil to fuel this development increased. Believing that there was endless energy, the American way of life had an insatiable appetite for oil. Up until 1950 the United States had been able to supply its own energy needs, but in less than 25 years it became apparent that this was no longer the case.…

    • 1351 Words
    • 6 Pages
    Great Essays
  • Great Essays

    Issues In Beyond Oil

    • 1075 Words
    • 4 Pages

    The world we live in is changing daily. Fossil fuel consumption has to be reduced, before our planet can begin to repair the damage man has caused. “It is estimated the world uses 87.8 million barrels of crude oil a day” (Friedman 195). “In 2000 it was estimated that the US consumed nearly 20 million barrels of oil a day, which is about 5% more than similar nations” (195). Oil consumption demand is going to increase as long as the supply can meet the demand.…

    • 1075 Words
    • 4 Pages
    Great Essays
  • Superior Essays

    From its creation, America has been a beacon of hope and freedom to many countries who have aspired to adopt their democratic values. Yet, these values have not always been sought after by other countries, and instead are sometimes imposed upon the ones who rarely accept them with open arms. The Middle East is a seamless example of countries exhibiting resistance to the American way of life and democracy; with many leaders rebelling against the notion due to religious reason. Particularly, Saudi Arabia has been a Middle Eastern Country that has had very close relationship the United States, and over time has adopted forms of its culture even though it clashes with their own. Saudi Arabia has become more Westernized and modernized with the discovery…

    • 1602 Words
    • 7 Pages
    Superior Essays
  • Improved Essays

    Thesis: Our energy comes predominantly from fossil fuels because of it’s supposed inexpensiveness. However, the cost of fossil fuels in terms of human lives is often ignored. Nuclear power, on the other hand, is a much safer alternative because it results in fewer deaths per unit of energy produced than coal and natural gas. By comparing their outputs in terms of energy produced per unit of fuel consumed, and comparing that with the amount of byproducts produced as well as the amount of deaths associated with both energy sources we can analyse their relative harmfulness.…

    • 1010 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    A question is then raised, How did this inflation of food prices occur? There are many factors which play a part in the inflation of food prices. Here are some of them. Firstly, more people around…

    • 705 Words
    • 3 Pages
    Improved Essays
  • Superior Essays

    Oil Research Paper

    • 1145 Words
    • 5 Pages

    Oil (or petroleum) is a very important thing to us. We use it every day. We use a lot of it in just a single day. Our life depends on oil. It may not be the only thing but it is one of the most important.…

    • 1145 Words
    • 5 Pages
    Superior Essays