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

Oil price reaches record high of $100 barrel - Essay Example

Comments (0) Cite this document
Summary
The article is about the current price rise of crude oil to $100 per barrel and it forecasts the price of the oil using key determinants. The article discusses the law of supply and states the existing scenario of oil prices is an exception to the case. Then the article explains the transition of oil prices from Buyers market to Sellers market…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER94.9% of users find it useful
Oil price reaches record high of $100 barrel
Read TextPreview

Extract of sample "Oil price reaches record high of $100 barrel"

Download file to see previous pages The discussion then shifts to US perspective where in the price of the oil is determined to a great extent by the Americans. Nearly 25% of the world oil supplies are consumed by USA. The article concludes by stating that the price of the crude oil may go up to $200 per barrel in the coming years.
The demand in the output markets are determined by the households from the above diagram. A household's decision about what quantity of a particular product depends upon the following factors and all the factors are getting affected due to the price hike.
Other products include substitutes (Solar power, Electric Battery, Wind power etc.) and complementary goods (Cars and Automobiles etc.). Due to this price rise, the prices of these substitutes and complementary goods will remain affected. Substitutes, a favourable condition exists and for complementary goods, the condition worsens.
As per this graph, the pricing of oil is having an impact on producers and consumers. The producers/suppliers price the oil as per the law of supply in early 2000's where the oil market was a buyers market. The basis of pricing was cost of production of the least efficient marginal supplier.
As per this graph, the pricing of oil is having an impact on producers and consumers in the perspective of price hike. ...
4. The Prices of other products available in the market
Other products include substitutes (Solar power, Electric Battery, Wind power etc.) and complementary goods (Cars and Automobiles etc.). Due to this price rise, the prices of these substitutes and complementary goods will remain affected. Substitutes, a favourable condition exists and for complementary goods, the condition worsens.
5. The households' tastes and preferences will change.
6. The household's expectations about future income, wealth and prices also will change.
Ultimately, the law of demand - "As price rises, quantity demanded decreases and vice versa" will play a crucial role in decision making by the household's.
Graphical Analysis

World Price
80 10
Quantity (Barrels)
Oil Pricing before Price hike
As per this graph, the pricing of oil is having an impact on producers and consumers. The producers/suppliers price the oil as per the law of supply in early 2000's where the oil market was a buyers market. The basis of pricing was cost of production of the least efficient marginal supplier.

World Price
100 15
Quantity (Barrels)
Oil Pricing after Price hike
As per this graph, the pricing of oil is having an impact on producers and consumers in the perspective of price hike. The producers/suppliers price the oil on three major components where the oil market is now a sellers market. The basis of pricing is based on three components like Value of equivalent human energy, Sustainable energy creation costs, Affordability of the least ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Oil price reaches record high of $100 barrel Essay”, n.d.)
Oil price reaches record high of $100 barrel Essay. Retrieved from https://studentshare.org/miscellaneous/1505645-oil-price-reaches-record-high-of-100-barrel
(Oil Price Reaches Record High of $100 Barrel Essay)
Oil Price Reaches Record High of $100 Barrel Essay. https://studentshare.org/miscellaneous/1505645-oil-price-reaches-record-high-of-100-barrel.
“Oil Price Reaches Record High of $100 Barrel Essay”, n.d. https://studentshare.org/miscellaneous/1505645-oil-price-reaches-record-high-of-100-barrel.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Oil price reaches record high of $100 barrel

The $100 Laptop Initiative

The main core of the project is focused on the poor countries where technology has not yet been developed and people do not have the resources to afford advanced technological aides (Gadgetopia, 2005).

Although the project is named as the Hundred Dollar Laptop, it is available for both government and private organizations for educational development use at a price of one hundred and ninety-nine dollars (Laptop.org., 2006). For the concern of the people and the OLPC Association, the laptop because of a higher price because it is in its developmental stages and due to lack of sufficient orders. However, the price of the laptop is claimed to be brought down over the coming years to a much closer figure to One hundred dolla...
9 Pages(2250 words)Term Paper

Irritable Bowel Syndrome and Peppermint Oil

Though IBS is rarely associated with any mortality, patients with irritable bowel syndrome often have a poorer quality of life due to its chronic, relapsing nature, increased morbidity and higher health care utilization than persons without the disorder. Although the cause of the disorder is not fully understood, manometric studies have shown that disordered bowel motility may be responsible for causing some of the symptoms. Diagnostic Criteria for IBS as described by Thompson et al (1999) is as follows:
conventional therapy, comprising of dietary changes like increasing dietary fiber intake, etc, and drugs such as anticholinergics, antispasmodics, and sedatives are often not significantly effective and may not be tolerated b...
14 Pages(3500 words)Case Study

Element of the Columbine High School Shooting

The morning of Tuesday, April 20, 1999, was a beautiful spring day and it seemed to be a regular day for Columbine High School as far as anyone knew. Students were coming to school as usual and no one suspected that it would be the longest day in the history of this high school. The parking lot was filled with the usual BMWs and Hummers of the football players and those students who were on the outside of the popular kids were being teased just like any other day. No one noticed anything different in the beginnings of that morning and no one really worried about anything. It is assumed that students had breakfast before they came to school and many were standing around waiting for classes to start and maybe smoking cigarettes as t...
12 Pages(3000 words)Case Study

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

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

Investigation of the Transient Behaviour of Earthing Systems Subjected to High Impulse Currents

The effect of the transient voltages and currents on the earthing systems has a great influence on the performance and evaluation of the substation equipment against lightning overvoltage. While the characteristics of the earthing system under steady-state depends on the electrode design and soil prosperities alone, the characteristics of the earthing system under impulse currents depends on the magnitude and shape of the impulse current. The experimental setup for the impulse tests on earthing systems has been designed with an impulse generator, voltage and current transducers and different types of earthing systems. The impulse tests with impulse voltages ranging from 500 V to 4 kV have been carried out and the impulse resistanc...
136 Pages(34000 words)Dissertation

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

Americas Dependence on Oil

As stated by the Energy Information Administration, transportation fuels such as gasoline, jet fuel, and diesel account for 2/3 of the total usage of oil in the United States of America (Eccos, 2011). About 45% of the usage is accounted for by gasoline used for light trucks, SUVs and cars (Eccos, 2011).
Of the total amount of petroleum used in the United States, 65% is imported from countries such a Canada, Mexico, Venezuela, Nigeria, Algeria, Iraq and Saudi Arabia (Eccos, 2011). This simply means that even if the United States was to stop using the 45% of the oil used for vehicles there would still be a dependency on oil. In 2006, a total of 317.1 billion gallons were consumed with almost 70% going to transportation, 25% for...
6 Pages(1500 words)Assignment

Should Shoe Companies Be Able to Give away Free Shoes and Equipment to High School Athletes

Today statistics of October 2013,  284,000 high school boys and 209,000 high school girls are playing soccer, 1 million are playing football, and 500,000 are playing basketball (“Youth Sports Statistics”).  These athletes need shoes and equipment, which are expensive.  It is no secret that under current economic condition many families are struggling to pay bills. It is as well not hard to understand that if parents are struggling to pay bills they will not be able to spend funds to pay for the items that their children need to use in sports. In 1906, a non-profit association by the name National Collegiate Athletic Association (NCAA) was formed that now regulates athletes of different institutions inclu...
7 Pages(1750 words)Term Paper

High-Context and Low-Context Culture

...People from high-context and low-context cultures may find it difficult to understand one another. Choose 2-3cultures as examples and explain why potential difficulties might arise. Name University Introduction The current world is considered as a global village. Technology has made it possible for people from different nationalities, race, and cultural background to come much closer to one another. Besides, it is possible for people from these diverse origins to work together and increase their levels of communication on a daily basis. These approaches are exciting because they help people interact and learn different cultures and social aspects from the diverse cultures and the people representing the diversity. However...
6 Pages(1500 words)Assignment
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 Oil price reaches record high of $100 barrel for FREE!

Contact Us