Contact Us
Sign In / Sign Up for FREE
Go to advanced search...

The Changing Price of Oil and Its Impact on the American Consumers - Essay Example

Comments (1) Cite this document
This article “The Changing Price of Oil and Its Impact on the American Consumers” is an eye opener into the world of oil prices, demand and supply and how spending on one commodity can affect demand for other goods and services. It looks at the behavior as a relationship between ends and scarce means…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER96.5% of users find it useful
The Changing Price of Oil and Its Impact on the American Consumers
Read Text Preview

Extract of sample "The Changing Price of Oil and Its Impact on the American Consumers"

Download file to see previous pages In the words of Lionel Robbins (1898-1984), Head of the Economics Department at the LSE: "Economics is a science which studies human behavior as a relationship between ends and scarce means which have alternative uses." (Robbins, 2007,3). This scarcity definition proposed by Lionel Robbins in 1923 reflects the fact that we have to make economic choices in daily life. Economic goods may be defined as those that are relatively scarce, have value and command a price. The price of a particular good or commodity as always is determined by the laws of demand and supply. Demand may be defined as the amount of a particular economic good or service that a consumer or group of consumers will want to purchase at a given price ( Supply may be defined as the total amount of a product (good or service) that is available for purchase at a given price ( It is the interaction of the forces of demand and supply in a marketplace that determines the price of a product at any given time. Price is the quantity of payment or compensation given by one party to another in return for goods and services. We talk of individual demand when we refer to a particular transaction made by a buyer or seller at a given price. We speak of aggregate demand when we talk of the entire demand of the world buyers for a particular commodity, in this case, oil. This aggregate demand is thus the sum of demand for oil by all the countries interested in buying this commodity from a certain supplier at a given point in time. The biggest supplier of oil in the world market is a consortium or group of producers called OPEC or the Organization of Petroleum Exporting Countries, an intergovernmental group of presently 12 oil producers. The graph below shows the price of Brent Crude oil per barrel for the four weeks beginning 07 November 2011 and ending on 07 December 2011. Price is indicated on the vertical axis and the time period on the horizontal axis of the graph. From the movement of oil prices on the graph, we can see that Brent Crude hit a high of $116 on 08 November 2011, probably as the war in Libya was still raging between Gaddafi loyalists and forces opposing the decadent regime. Ultimately as the liberating forces gained the upper hand, Gadaffi was captured from a sewer in his hometown of Sirte. Still, the battle raged on for a few days more as forces loyal to the former leader took their last stand. The OPEC nations meanwhile had temporarily increased their supply to the world in the light of the fact that access to Libyan oil, which totals 5 percent of the world supply, was unavailable during this period. There is a drop in oil price to $107 per barrel on 17 November 2011 as the world debate on what to do in post-war Libya was finalized and funds were released to the emerging leadership and the commander of the liberating forces was even invited to France to talk with Sarkozy and other leaders. Once it was clear that a transition to democracy was on the cards and there was no danger of further insurgencies or threat of an Islamist radical group taking over, Libya was given its funds, sanctions were lifted and supplies of oil to the world could be resumed. Meanwhile, as Iran and Syria face increasing sanctions, they would like to keep the price of oil as high as possible. ...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
(“The Changing Price of Oil and Its Impact on the American Consumers Essay”, n.d.)
Retrieved from
(The Changing Price of Oil and Its Impact on the American Consumers Essay)
“The Changing Price of Oil and Its Impact on the American Consumers Essay”, n.d.
  • Cited: 0 times
Comments (1)
Click to create a comment or rate a document
aufderhargreg added comment 2 years ago
Student rated this paper as
I had an issue with a essay types of works. All until I came across this website and this particular paper. Even though "The Changing Price of Oil and Its Impact on the American Consumers" is far from my interests, the structure is so great that I use it all the time as an example for my own works.

CHECK THESE SAMPLES OF The Changing Price of Oil and Its Impact on the American Consumers

The Impact of Comic Books on Boys and Girls

Marvel comics made the first important steps in the particular sector – at the decade of 1960s, the firm presented through its books a series of innovative stories that have until today a significant influence to the public - the characters and the appearance of the stars of Marvel and the other firms that govern the specific sector since the decade of 1960 will be analyzed in the sections that follow. The current paper refers to a specific aspect of the particular sector (comic books): the perspectives of the firms operating in this industry on boys and girls; special reference is made to the change of these perspectives from the 1960s until today. Marvel is used – among other firms – as indicative example of th...
15 Pages (3750 words) Research Proposal

Investigating the Viscosity of Vegetable Oil

Vegetable oils are essentially esters of glycerol and fatty acids derived from plant and animal sources. Due to the difference in the composition of fatty acids in different types of oils, there are differences in their viscosities also. Most vegetable oils are liquid at ambient temperatures; and are also more viscous than aqueous solutions (Lewis: 132).
In several food processing operations, it is essential to determine the viscosity of the fluid being processed so that the most suitable equipment can be selected. The viscosity may change considerably during some operations such as heating, cooling, homogenization, concentration and industrial fermentations by molds. When planning these processes, these viscosity changes nee...
11 Pages (2750 words) Article

Liberalism and Its Aspects

After listing out the shades of liberalist thinking, the main point of this paper is that for the times that we live in, Liberalism is best suited as an alternative to the prevailing ideologies of the time. The world took a dangerous turn in the aftermath of the 9/11 attacks on the US. The resulting “War on Terror” that followed took a toll on individual liberties and it appears to be that liberal values and liberalism have been buried in the rancor that characterized the last eight years. The very nature of the individual and his or her role in the nation-state has been tested and the notion of liberties questioned. However, there seems to be a tendency towards reclaiming the premises of liberalism namely that of indi...
12 Pages (3000 words) Coursework

The American Nation: A Melting Pot of Asian Americans

As a result, American society is experiencing dramatic transformations (Skop & Li, 2005).
The Asian community in the United States is a cultural group that has assumed form since the passing of the 1965 immigration legislation. Even though Asians have been arriving in the United States since the middle of the 1980s, only in the previous four decades have the waves been remarkable. At some stage in that period, the U.S. Asian population has increased dramatically, and Asians one of today’s fastest-growing ethnic and racial minorities in the nation (ibid).
Asian immigration to and settlement in the United States is somewhat well recognized. Generally, Asian immigrants are geographically concentrated, with the imm...
7 Pages (1750 words) Assignment

Women in American Politics: Past and Future Challenges

The official political role of women in the colonial period was not definite at all. Political rights were founded profoundly on ascribed status such as birthrights and on achieved status such as property. Religion also contributed in determining who could and could not play a part in politics. There was no steady and widespread difficulty in the participation of women in political life, yet only a small number of women voted in England and North American colonies, and hardly any women participated in politics to the degree of putting into effect political influence (ibid). In reality, the minority had any public office at all in England, and no women can be recognized as holding elective political office in the colonies.
19 Pages (4750 words) Research Proposal

American Airlines: Supply Chain Nightmare

For this reason, it is necessary that all business sectors are carefully reviewed – as often as possible – for the appropriateness of their structure and their daily needs; managers may fail to evaluate with accuracy their firm’s needs, a fact that can cause the failure of plans applied on the relevant organization (Hardless, 2005). On the other hand, the needs of various organizational departments are different; the methods used for the improvement of a firm’s activities should be flexible taking into consideration the characteristics of the specific organizational sector, its strengths/ weaknesses but also its role in the development of the firm’s activities. Boeing is a firm with a long presence in...
15 Pages (3750 words) Case Study

Oil Prices by OPEC and Market Fundamentals

Market failure is defined as the inefficient allocation of resources by the market, the free market is considered to optimally prices and resources in the production of goods and services, and this is because the price and quantity produced are determined by market forces which include the demand and the supply. The control of prices by a firm or an organization in the market results in market failure, therefore OPEC leads to market failure due to its nature in the market.

OPEC was formed in 1960 by 5 oil-producing countries which include Venezuela, Saudi Arabia, Kuwait, Iran and Iraq, The aim of this organization was to unify petroleum-producing countries in order to realize fair and stable prices of oil .other oil-pro...
6 Pages (1500 words) Report

Asher B. Durand and the American Landscape

... by the New York Public Library to the Crystal Bridges Museum of American Art in Arkansas, bankrolled by Alice Walton. It was a sealed auction, and the actual price paid remains unknown but it is estimated to have reached somewhere near $35 million, which was a record price paid at that time for an American art. It made headlines and rippled a controversy which continues to remain so. Many are of the belief that what happened was wrong and the painting should have stayed at the Durand’s home for much of his adult life. This painting may not be his paramount art work, but it is one of the icons of American art. Lumen Reed, a successful grocery wholesaler, facilitated Durand’s work by ordering a set of painted portraits of the first seven...
7 Pages (1750 words) Essay

Impact of Motivational Factors upon Employees at Bank AlFalah and Standard Chartered Pakistan

The impacts of these policies upon the employees of the banks will be studied with the help of the responses of the employees of both of the banks. The proposed research study will present the case studies of these two banks by employing a qualitative research approach. The data and information for the study will be collected through secondary and primary resources i.e. through literature review and in-depth interviews of the employees of both the banks. The study will help in the identification of the major strengths and weaknesses present in the motivational policies of these banks and will allow proposing the formulation of improved policies.

Motivation basically refers to satisfying one’s needs through differe...
14 Pages (3500 words) Research Proposal

The Effects of Financial Crisis on Supplier Selection Criteria of the Oil and Gas Industry Equipment Market

It is a difficult task to find those vendors who not only have the adequate quality and quantity of the needed raw materials but who also have an attitude of efficiency and display commitment to customer service (Sonmat, 2006). Further, organizations also strive to locate and select vendors who can be depended upon for long term relationship.

The number of factors or attributes desired from the vendor is vast, and different organizations and different industries place different importance on the attributes (Sonmat, 2006). Some of the vendor attributes may gain importance owing to the nature of the industry, for example, in the case of consumer perishables suppliers, like fresh vegetables or fruits, the buying firm would...
20 Pages (5000 words) Literature review
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 Essay on topic The Changing Price of Oil and Its Impact on the American Consumers for FREE!

Contact Us