Oil in the market

The demand for oil will be present a perfect example of this would have to be, the Chinese economy, with a surge in the demand for crude oil in china, their economy has risen tremendously. Since oil is limited. People must look for other alternatives like solar power, hydro power, even alternatives like ethanol where it is used faintly as a source of energy to power vehicles. When it comes to the market speculation there is a lot of investment being poured into the oil trade, due to this surge of investments, fluctuations in the market go from high to low on a daily basis.
Risk will be present when it comes to business, but in the case of the investors depending on how the market trends are they may lose profit rather then make profit. When it comes to the supply of oil there are long and short-term factors that affect the international markets. The short-term factors include: -Profit motive -Spare capacity -Stock External shocks Profit making factors rely solely on OPEC operating nations. OPEC is put in place as a cartel to regulate price fixtures on crude oil and gas that are supplied by world’s oil producers.
Ex: Saudi Arabia Oil refinery’s have stocks in place to be released in the market when the demand for oil fluctuates, in the case of an oil company in peril with low profits, the effects of production shocks may be devastating to the companies growth, examples of these issues. Taking a longer-term perspective, the long run world oil supply is linked to 1 . Reserves: Depletion of proven oil reserves – the faster that demand grows, the quicker the expected rate of depletion 2.

Exploration: Investment spending on exploring, identifying and then exploiting new oil reserves. When oil prices are rising and are expected to stay strong for the foreseeable future, it makes financial sense to invest more resources in exploring for new reserves, even though these may not come on stream for some years. 3. Technology: Technological change in oil extraction (which affects the costs of extraction and the profitability of extracting and then refining the oil) Long-term effects include: Reserves Exploration Technology

Don't use plagiarized sources. Get Your Custom Essay on
Oil in the market
Just from $13/Page
Order Essay
Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more
Use the discount code "OFFNOW" today and get a 20% offOrder Now
Live Chat+1(978) 822-0999EmailWhatsApp