Nobody downloaded yet

Oil Prices and the World Economy - Dissertation Example

Comments (0) Cite this document
Summary
This paper “Oil Prices and the World Economy” investigates into the major factors that bring about a change in the price of oil, in particular, in the recent scenario of oil price hikes. It emphasizes what actually has led to such unexpected oil price shocks in recent years…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER93.7% of users find it useful
Oil Prices and the World Economy
Read TextPreview

Extract of sample "Oil Prices and the World Economy"

Download file to see previous pages The recent dramatic rise in oil the price has led the scholars to investigate the factors affecting the price of oil in the short and long term. The price of oil in the international market is affected by both demand and supply forces for example consumption of oil and production capacity of petroleum exporting countries. These forces tend to affect the price of oil in the short and long term. Along with the forces of demand and supply, there happen to be certain artificial factors that particularly cause the world oil to become expensive for oil importing countries, for instance, geopolitical factors and disruption in oil supply. The major demand-side factors that affect the price of oil are economic growth and increased consumption etc. On the other hand, the major supply-side factors playing a role in increasing oil prices are incapability of OPEC to produce more, the inability to gauge future demand and political factors, etc. Other important factors influencing the price of oil are speculation and futures trading. The point that is important here is that both the demand and supply related factors, as well as some apparently uncontrollable factors, combine to cause such unexpected hike in international oil price as witnessed in the last few years.  The recent dramatic rise in oil price has led the scholars to investigate the factors affecting the price of oil in the short and long term. The price of oil in the international market is affected by both demand and supply forces for example consumption of oil and production capacity of petroleum exporting countries. These forces tend to affect the price of oil in the short and long term. Along with the forces of demand and supply, there happen to be certain artificial factors that particularly cause the world oil to become expensive for oil importing countries, for instance, geopolitical factors and disruption in oil supply. The major demand-side factors that affect the price of oil are economic growth and increased consumption etc. On the other hand, the major supply-side factors playing a role in increasing oil prices are incapability of OPEC to produce more, the inability to gauge future demand and political factors, etc. Other important factors influencing the price of oil are speculation and futures trading. The point that is important here is that both the demand and supply related factors, as well as some apparently uncontrollable factors, combine to cause such unexpected hike in international oil price as witnessed in the last few years.  
At the beginning of the last century when oil was considered to be sufficient for world consumption, economic growth was limited to a few countries. Most of the oil was imported to the highly developed countries of that time to fuel their industries and transportation etc and the consumption of oil was also limited as compared to present times. As time passed, major changes in the world economy began to mark their presence. More and more countries entered the race of economic growth with certain prominent countries like the United States, Britain, and other European countries accelerated their economic growth. Barrell and Pomerantz also propound that “changes in oil prices have been associated with major developments in the world economy…” (2004, p152) ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Oil Industry Master Essay Example | Topics and Well Written Essays - 3000 words”, n.d.)
Retrieved from https://studentshare.org/business/1522254-oil-industry-master-essay
(Oil Industry Master Essay Example | Topics and Well Written Essays - 3000 Words)
https://studentshare.org/business/1522254-oil-industry-master-essay.
“Oil Industry Master Essay Example | Topics and Well Written Essays - 3000 Words”, n.d. https://studentshare.org/business/1522254-oil-industry-master-essay.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Oil Prices and the World Economy

Saudi Arabia's Oil Impact on World Economy

...?Introduction Saudi Arabia is one of the largest oil producers in the world and according to Vitalis, (2007), the country has the second largest oil reserves globally. Oil accounts the largest source of the global energy demand and hence the economic importance of Saudi Arabian oil is tremendous. The development of oil sector in Saudi Arabia and other oil producing countries has undergone numerous political and economic changes, which have affected production and the eventual prices of the commodity in the global market. This paper explores the Saudi Arabian oil and its impact on the global economy. The establishment of Saudi Arabia Historically, the development of the oil industry in Saudi Arabia has been closely associated... ) and it has...
7 Pages(1750 words)Research Paper

Rising Oil Prices: Benefits Amidst Rapid Fuel Inflations

...Rising Oil Prices: Benefits amidst Rapid Fuel Inflations OBJECTIVE: To show how the rising oil prices contributed beneficially to some areas like the environment, road congestion, and energy conservation. METHODS: Data gathering from current news as well as other research articles published by scholars relating to the issue of rising fuel prices. This paper will provide discussion of the causes and initial impacts of the rise of fuel in the world market and economy as well as on low-income households. RESULTS: The rising oil prices do not affect the world...
5 Pages(1250 words)Research Paper

Crude oil prices

...Running head: Research Methods: Price of Gas in USA Research Methods: Price of Gas in USA s Solution to the problem is found out by research in a scientific approach. To find a solution to the problem by research requires identifying and analysing the nature of the problem and experimenting with the new methods to find a solution. The first step to research is to select the basic method by which the problem can be identified and analysed. The present study is to find out the causes for the disproportionate escalation of the price of gasoline than the price per barrel of crude oil and its effects on consumers. Methods of research: The aim of selecting any...
2 Pages(500 words)Essay

Oil Prices

...on manufacturing outlays-would further decrease in the short run. As a result, world GDP falls 1.4 per cent below the baseline at the trough and global inflation rises about 1.5 percentage points (first figure). The regional macro-economic outcomes of higher oil prices depend on whether a country is a net oil exporter or importer, and on its oil intensity. Oil exporters run a large trade surplus, peaking around 6 per cent of GDP above the baseline, and enjoy a vigorous expansion. In contrast, the oil-importing economies suffer weakening in their external balances and a slowdown in. The impact is more...
8 Pages(2000 words)Essay

Impact of Oil Prices on the US Economy

...not been sudden and the economies of the major economic powers have adjusted to the change. The rise in oil prices will definitely result in an across the board change in prices and thus inflation rates will continue to be high. However the likelihood of this leading to a recession in the US and other large economies of the world is remote. Introduction 'There are good reasons to believe that 2006 will be the year when consumers in America and several other economies lose their nerve' (Woodall, P 2006). Over the last five years, US natural gas markets have known three major price shocks and have...
7 Pages(1750 words)Essay

Rising of Oil Prices

...Asia - the major oil producing region of the world. At USD 110 per barrel, there are ominous signs of not just in the US but a serious world-wide economic down turn. Oil prices In the West Asian region, Saudi Arabia, Iran, Iraq and the Gulf countries are among the world’s largest oil producers. The US, UK and other European oil corporations were controlling the oil exploration and refining industry here and setting the price of this vital commodity. The growing economies of the western countries and Japan needed ever increasing volumes of the...
3 Pages(750 words)Essay

How have oil prices affected our economy

...Such moderations with thy bounty join, that thou may’st nothing give that is not thine. That liberality is but cast away, which makes us borrow what we cannot pay Denham Continually increasing prices through the economy has been felt since 1999. The unstoppable growth of third-world nation’s economies surged the oil demand from China and India to lend a widespread instability in most oil-producing regions, including Iraq and the delta region in Nigeria (“Oil and Gasoline,”2008). This has led to the economic and political redrawing of the map of the world that is testing the power...
3 Pages(750 words)Essay

Oil and Gas Prices

...is very sensitive to conflicts. Security threats and outbursts of violence have disrupted oil flow from countries like Nigeria, Iraq, Colombia, and the Middle East and since 2005 have cut 20% to 30% from Nigeria’s oil output (Richter, 2008). The Nigerian conflicts have prompted many world leaders to call on the Nigerian government and insurgents to quickly resolve their issues. OPEC officials also claim that as the conflict in the Middle East is continuing to escalate, so do the oil prices. They emphasize that “oil prices are affected by political issues” (Gilford, as quoted by Baines, 2009). Disruption of...
6 Pages(1500 words)Essay

Falling oil prices are bad for the economy

..., which is one of the major consumers of oil and oil related products (Pahl & Anne, 33). This paper argues that the low prices of oil, as they are witnessed currently, are very harmful to the economies of the world. One of the major impacts of the falling oil prices is the destruction of economies that are heavily relying on oil. Examples include the Russia, Venezuela, Iran, and even Saudi-Arabia. In a recent rating of the Venezuelan debt capability, the country was downgraded, and this is because of a drop in the oil prices,...
5 Pages(1250 words)Essay

Crude oil prices

...Crude Oil Prices Price drop of Crude Oil In the recent past, the prices of crude oil have experienced a rapiddecline in the world’s oil market. Various countries that entirely depend on oil exportation have experience quite a hard economic time as a result. According to economist in the oil industry, a combination of factors has played a significant role in scaling down the prices of crude oil. Some of them include the oversupplying of the product, inflated American currency, impact from the OPEC, and several deals that America has made...
3 Pages(750 words)Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Dissertation on topic Oil Prices and the World Economy for FREE!

Contact Us