Question

Galloping Oil Prices: Supply-Demand Dynamics article

1.What are the factors that influence the price of crude oil in the international market? ( At least 200 words)

2. Has OPEC lost its control over the oil market? ( At least 100 words)

3. According to the article, what are the main reasons of the hike in oil prices? Suggest measures to stabilize the price of oil. (At least 300 words)

Answer 1

Crude oil is like Black Gold and it is world's one of most precious commodity .It price change affect the whole ecosystem of economy globally ranging rom family budget to the earning of vorporate people to the nation's Gross domestic product.The OPEC has been the largest in the world trading floor and its producing member nation who work together in order to find the price by reducing or boosting the crude oil price.In the market the Grip of OPEC has been loosened in past years but its decision has been continously playing a dominant role in the market.The crude oil price react to variables like consumer demand,overall supplies,econoic news etc .In the past , we can see that the supply disruption of the crude oil is trigeered by the events which wee political and it has caused oil price to shift rapidly .The events like Arab oil embargo ,Iran -iraq war and persian gulf war is included and cause of it.Also one of the main factor was asian fianncial crisis of 2007-2008 which caused fluctuations.The other factor which influences the crude oil price are weather pattern,exploration ,production cost ,innovation ,investment,Transportation,ppulation growth, and seasonal changes . Curently more and more market participants are there buying and selling the crude oil in international market but in form of contract like airplane and oil producer who uses its derivatives as future option .

Have a good day !