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Article Aalysis - Coursework Example

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Summary
The utility that is derived from oil, and in turn processed into diesel and gasoline, as well as an array of other purposes, is most importantly the ability to transport an individual from one place to another. Within the modern world, this transport from one location to the next is the way through which most individuals earn a living…
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Article Aalysis
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Article Aalysis

Download file to see previous pages... In seeking to understand the article which was selected for this brief analysis, US fuel prices take a slight dip”, the reader sees very clear and inherent understandings of the way in which fuel prices within the United States, and elsewhere throughout the world for that matter, are not directly linked to the ability of the environment to produce this resource and/or the overall expectation of the diminished resource in general. Rather, the price of fuel/oil is ultimately tied to the expectation of stability in the world . Moreover, unity and stability within a particular region that is somewhat close or geographically important to a trade route can send oil prices skyrocketing. As such, it is easy to understand why the past several months have seen a market spiked with regards to the price of oil worldwide. ...
Such a judgment is made with respect to the fact that without major alterations with regards the way in which the global economy interacts, individuals are not able to alter their consumption of oil without widespread and far-reaching repercussions being felt within their own personal life and within the broader economic sense of their respective regions. In seeking to fulfill a further requirement of this brief analysis, the instructions indicated that the student was responsible for describing what is occurred to the change in supply of the particular product. In short, nothing has changed. Rather, fear within the futures market has driven up price and caused investors to panic with regards to what may be the case within the next few months/years. Yet, it is unfair to say that changes in supply do not occur within the oil market. Hardly a week passes without an article being written, or a newsworthy item being referenced that considers the way in which the oil-producing nations of the world (OPEC) have either increased or reduced supply as a means of deriving up or driving down prices of oil (Piazza, 2013). Much as they have within the past, Saudi Arabia has been responsive to the increased price of oil throughout the world and has increase the output from their wells so that the price of the substance in question could be nominally reduced. However, all that being said, it is painfully obvious that the ultimate reason for why fuel prices have begun to drop does not have to do with the increased output of one single oil-producing nation; rather, it has to do with the fact that the United States, the Russian Federation, and Syria have all agreed on a tentative resolution through which a United States backed ...Download file to see next pagesRead More
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