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About Gasoline crises - Research Paper Example

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Any fluctuations in oil supply and its prices can create immense changes in world economy especially in the current era of globalization and liberalization. Variations in oil prices can affect Gross Domestic Product (GDP) growth, unemployment, inflation and also the oil…
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Research paper about Gasoline crises
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Download file to see previous pages Oil is essential for all the vehicles irrespective whether it is moving on air, water or land. Though many alternative solutions have been suggested as fuel instead of oil for vehicles like solar energy, electrical energy etc, nothing evolved as a permanent and convenient option yet. The exhausting of current oil sources has created major crises in the current world as many experts believe that the available oil resources may last for maximum 30 to 40 more years considering the nature of consumption at present. This paper briefly explains gasoline crises based on the oil price variations and its impact on global economy.
Oil is an essential commodity for the world’s economy. It is impossible for us to think about our body without blood. Same way oil is the blood of world economy. Any problems in occurred in this blood (oil) can cause severe damages to the body (economy). Oil is an essential commodity required everywhere, but unfortunately the oil resources are confined to some areas or regions only which made oil trade an essential economic activity in the current world. Major oil producing countries have monopolized the world market and they have varied the prices of oil as per the supply and demand theory. Around three years before the oil prices has reached an all time high of around $ 150 per barrel whereas it has come down to as low as around $ 30 per barrel recently because of global financial crisis and low demand of oil products. America is one of the topmost oil consumers in the world because of the huge amount of automobile vehicles used for different purposes in this country.
Irrespective of developed, developing or underdeveloped, all the countries need oil and the oil trade has started between countries as early as the oil and automobiles were discovered. One of the rapidly growing economies in the world Brazil has reportedly engaged in a, bilateral trade of US$ 8.192 billion in 2004 with the Arab countries. (BRAZIL: ...Download file to see next pagesRead More
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