In US and Europe, the price of oil was stable to 2014 from consecutive 2010 because the higher authority of these countries gave permission to the Iranian oil sale to restrain nuclear program of Tehran. The trading price of oil was $110/ barrel, but the situation did not last many days. The crude oil price had reduced to $30/ in this week. The causes behind this fall can be said in two ways: low demand in some countries due to weak economic growths and growing production of US (BBCNews, 2016).
In the post-World war period, the prices of Crude oil had ranged from $2.50 to $3 in between 1948 to 1960. After this time period, the price of crude oil was varied between of $14 to $16 in 1996 and this had brought inflation in the global economy. Although oil price was steady to 1970 from 1958 but, in reality, crude oil price had faced a sharp decrease from $15 to $12 for each barrel. This downfall had adjusted due to inflation but had worsened again in 1972 due to US currency’s weakness. The exporting nations of OPEC had found a rising desire of crude oil throughout the period of post-world war 2. After setting the proration by Railroad Commission of Texas, OPEC had the power to control the price of crude oil (Ibrahimov, 2012).
The main reason will include the simple demand and supply analysis. From the last few years, the domestic production of US has increased largely which leads to lower the import rate. Thus, Saudi Arabia, Algeria, and Nigerian oil found a very competitive scenario in finding a new Asian market. So, the producers of oil have been forced to reduce the price of oil (Steffy, 2011).
However, the oil production is falling in the US due to low investment explorations; they were trying to manage the situation at a fast rate. From the demand side, the vehicles in European countries, as well as developing countries, became energy efficient. Thus, fuel demand has declined day by day.
The industry of oil always reached to boom but has seen a huge downturn after 2014. In recent times, the oil companies have seen a downtrend in their earnings. Employment opportunities have reduced due to this fall in price. Almost 250000 employees were sacked from their jobs and production equipment; manufacturing products have also faced a downfall (Bordoff, 2016).
Since the month of May 2009, the pump prices of US were below $2/ gallon and the households have saved $700 in average in costs of fuel. There was occurring an economic stimulation due to this extra money (KRAUSS, 2016). There was a positive side too. Due to this downfall, imports have decreased and low price of oil leads to the oil boom in US hearts (Wyoming, Texas etc.).
From the study, it can be said that there were fluctuations from the post-world war period. In 2010-2014, the oil price was steady, but it had faced a downfall due to various reasons. To manage the situation, the governing body can raise the fuel tax; modernize the strategic reserve for US Petroleum and can also do the subsidy reform (CHEN, 2014).
BBCNews,. (2016). Falling oil prices: Who are the winners and losers? - BBC News. Retrieved 28 January 2016, from https://www.bbc.com/news/business-29643612
Bordoff, J. (2016). Oil price plunge: Risks and rewards - CNN.com. CNN. Retrieved 28 January 2016, from https://edition.cnn.com/2016/01/14/opinions/bordoff-risks-and-rewards-oil-price-plunge/
CHEN, S. (2014). FORECASTING CRUDE OIL PRICE MOVEMENTS WITH OIL-SENSITIVE STOCKS. Economic Inquiry, 52(2), 830-844. https://dx.doi.org/10.1111/ecin.12053
Ibrahimov, M. (2012). Crude Oil Price Security: How Crude Oil Price is Formed?. IJEEEE. https://dx.doi.org/10.7763/ijeeee.2012.v2.142
KRAUSS, C. (2016). Oil Prices: Whatâ€™s Behind the Drop? Simple Economics. Nytimes.com. Retrieved 28 January 2016, from https://www.nytimes.com/interactive/2016/business/energy-environment/oil-prices.html?_r=0
Steffy, L. (2011). Drowning in oil. New York: McGraw-Hill.
Earn back money you have spent on downloaded sample
To export a reference to this article please select a referencing stye below.
Assignment Hippo (2022) . Retrive from https://www.assignmenthippo.com/sample-assignment/fall-in-oil-prices-answers-assessment-answer
"." Assignment Hippo ,2022, https://www.assignmenthippo.com/sample-assignment/fall-in-oil-prices-answers-assessment-answer
Assignment Hippo (2022) . Available from: https://www.assignmenthippo.com/sample-assignment/fall-in-oil-prices-answers-assessment-answer
Assignment Hippo . ''(Assignment Hippo,2022) https://www.assignmenthippo.com/sample-assignment/fall-in-oil-prices-answers-assessment-answer accessed 02/07/2022.
Talk to our expert to get the help with Fall In Oil Prices Answers Assessment Answers from Assignment Hippo Experts to complete your assessment on time and boost your grades now
The main aim/motive of the finance assignment help services is to get connect with a greater number of students, and effectively help, and support them in getting completing their assignments the students also get find this a wonderful opportunity where they could effectively learn more about their topics, as the experts also have the best team members with them in which all the members effectively support each other to get complete their diploma assignment help Australia. They complete the assessments of the students in an appropriate manner and deliver them back to the students before the due date of the assignment so that the students could timely submit this, and can score higher marks.Â The experts of the assignment help services at www.assignmenthippo.com are so much skilled, capable, talented, and experienced in their field and use our best and free Citation Generator and cite your writing assignments, so, for this, they can effectively write the best economics assignment help services.
Want to order fresh copy of the Sample Fall In Oil Prices Answers Assessment Answers? online or do you need the old solutions for Sample Fall In Oil Prices Answers Assessment Answer, contact our customer support or talk to us to get the answers of it.Assignment Help Australia
Want to order fresh copy of the Fall In Oil Prices Answers Assessment Answers? online or do you need the old solutions for Sample Fall In Oil Prices Answers Assessment Answer, contact our customer support or talk to us to get the answers of it.
Our motto is deliver assignment on Time. Our Expert writers deliver quality assignments to the students.
Get reliable and unique assignments by using our 100% plagiarism-free.
Get connected 24*7 with our Live Chat support executives to receive instant solutions for your assignment.
Get Help with all the subjects like: Programming, Accounting, Finance, Engineering, Law and Marketing.
Get premium service at a pocket-friendly rate at AssignmentHippo
I was struggling so hard to complete my marketing assignment on brand development when I decided to finally reach to the experts of this portal. They certainly deliver perfect consistency and the desired format. The content prepared by the experts of this platform was simply amazing. I definitely owe my grades to them.