Crude Oil Last 10 Years - 4918 Words

INTRODUCTION The role of petroleum products in our lives is unquestionable. It is safe to say that oil is the cornerstone of our civilization. A pessimist might argue that without oil our industrial society will collapse and there will be rapid decline in the world population. But again that is a pessimist’s view, personally we would like to think that we will in near future find other energy sources on which we can depend and build our civilization to reach the next milestone. In this report we have tried to highlight the fluctuations of crude oil during the period of 2001-10. The scope of this report is limited only to this period as we believe that events that took place during this decade had the potential to change the oil game so†¦show more content†¦Thus the oil market participants – producers, refiners, marketers, and traders – would not have one of their bases for setting prices in their contracts and other transactions. It does not appear that the oil industry was materially affected by the closing of the Nymex, which, in any event, resumed all operations in about one week. While the immediate effect of the attacks on petroleum markets was to drive prices up, market forces – reflecting little change in supply and demand – acted quickly, and crude oil prices eased within little more than a week. Average crude oil prices paid by U.S. refiners actually declined for the month of September 2001 – falling to $ 20.82 per barrel from $24.08 in the previous month. 2002: After moving lower in 2001, crude oil prices moved higher in 2002 reaching over $30 per barrel in September 2002. Higher prices were supported by a number of factors. One was the ongoing U.S. war on terrorism and rising tensions with Iraq. There was the likely potential that military action would be taken against Iraq that would disrupt the supply of crude oil to the market. With that issue still not settled as 2002 drew to a close, crude oil prices continued to find support. While there were factors supporting higher prices, there were also factors working against them. The Organization of Petroleum Exporting Countries (OPEC) after a meeting in 2001 agreed that production of oil would be cut. TheShow MoreRelatedOil Prices And Rise And Fall Of Chinese Economy Essay1125 Words   |  5 PagesFalling crude oil prices and rise and fall of Chinese economy Who’s afraid of falling crude oil prices? Isn’t it something to celebrate from the consumers’ point of view, especially in the Asian region! The answer is perhaps â€Å"no†. Though the debate over the impact of plunge in crude oil price and its implications will continue for long, nothing can be said with fair amount of certainty as long as its link with the slowdown of Chinese economy. A substantial amount of work is being carried out by theRead MoreOil Gas Price Evolution1625 Words   |  7 PagesMoves the Oil and Gas Price? Why are oil prices and gas prices so dramatically increased in the last view years? Oil and gas price will maintain the current level or rise in the next years because of the world economy, an increased demand on oil and its production costs, the gas demand, and the investment in developing alternative energy sources. How long will the oil reserves last? It is currently estimated that the oil reserves in the United States will last for 20 to 30 years, butRead MoreOil And Demand For Oil1174 Words   |  5 PagesCrude oil is one of the most economically mature commodity markets in the world. Even though most crude oil is produced by a relatively small number of companies, and often in remote locations that are very far from the point of consumption but it is shipped all over the world. The global supply and demand determines prices for oil. Events around the world can affect the prices at our home for oil-based energy. OPEC, the large oil-producing cartel, does have the ability to influence world pricesRead MoreManaging Crude Oil Using Derivatives1604 Words   |  7 PagesMANAGING CRUDE OIL USING DERIVATIVES The present price markers for crude oil are WTI, Brent and Dubai/Oman. The crude oil derivatives contracts are traded on the New York Mercantile Exchange (NYMEX). The exchange acts as a regulatory body and as a financial trading forum for all the parties interested in buying the options. Members of the exchange carry out the trades themselves, or they act on behalf of the firms they represent through an open outcry auction held in the trading room or the floorRead MoreThe Economy Of The Oil Industry952 Words   |  4 Pagesthe last years, the oil industry practiced its deepest recession since 1990s. That being said, the recovery for this industry finally starts getting better. The Organization of the Petroleum Exporting Countries approved to change the production last year, 2016. This arrangement has been holding over to this year, with oil prices increasing for the past several months. But in recent weeks, United States records have been found greater oil prices have been faded. Ex perts think it will be years beforeRead MoreEconomic Issues Independent Research Assignment965 Words   |  4 Pages Year 10 Commerce Economic Issues Independent Research Assignment Cover sheet Submitted by: Alex Dicembre Word Count: 938 Contents page Executive summary This report will consist of the causes and consequences of the changing price of WTI crude oil and recent trends in the global price of oil. It will also include the effects of the ever-changing price of oil on individuals, business firms, governments and the economy. Data PriceRead MoreOil Drilling and Gas Extraction Industry in the US Analysis1242 Words   |  5 PagesConnor Sims, Associate SUBJECT: Oil Drilling amp; Gas Extraction Industry in the US Analysis (21111) This report presents information regarding the industry, the primary operator of oil and gas field properties. The industry fuels its key buyers, the Natural Gas Distribution (22121) and the Petroleum Refining (32411) industries, with crude oil and natural gas. The industry continuously battles a shortage of available oil. In addition, many major oil fields have been in use for decades, slowlyRead MoreThe Price Of Gasoline Prices1662 Words   |  7 PagesIn 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 twoRead MoreBusa 3000 Country Paper1518 Words   |  7 Pagesis in need of policies to modernize the economy and create banking reform (U.S. Department of State). The current GNI – PPP is $283 billion USD, with the per capita around $8,110 (Google Public Data). The major natural resources in Algeria are crude oil and natural gas, produced since the 1950s (World Desk Reference). These are also the country’s major exports, totaling $57.19 billion USD in 2010. Algeria’s top export partners are the United States, Italy, Spain, France, Netherlands, Canada, andRead MoreThe Oil And Its Effects On The Economy1390 Words   |  6 PagesWe go to know on the ecuadorian oil situation, his commercialisation to national and international level, analyse the diverse systems of exploitation that at present are treated of unsuitable form and with big deficiencies in the state field Know on the functions that operate at present in Petroecuador, and his result in the Ecuadorian economy. Know those who find mayorme nte benefited with the resource of the oil in the Ecuador, and as they find structured said advantages as they were the one of