Preview

Analysis Oil Trade Arabic Spring

Powerful Essays
Open Document
Open Document
1599 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Analysis Oil Trade Arabic Spring
Project economics Market investigation
Project economics Market investigation

St. Maartens College

St. Maartens College

Guido Kinds – T4Y

Guido Kinds – T4Y

In this oil price analysis I will discuss the impact of geographical and political events on the demand and supply of oil. I am going to do a price analysis over the oil price’s highlights of March 2011. Like prices of other commodities the price of oil swings in times, when there is a shortage or oversupply, and responding to changes in demand as well. Since oil is a natural resource it is scarce, and it’s supply is limited. March 2011 was a very weird month for the oil market, given the fact of key events the Arab spring. Also the big tsunami in Japan had its effect. So my research question will be: What kind of effects do geographical and political events have on the oil price?

Here is the data I will do my analysis on: Data Oil Price WTI Month March 2011 | March 1 | 99.63 | March 2 | 102.27 | March 3 | 101.92 | March 4 | 104.34 | March 5 | - | March 6 | - | March 7 | 105.37 | March 8 | 105.06 | March 9 | 104.39 | March 10 | 102.73 | March 11 | 101.14 | March 12 | - | March 13 | - | March 14 | 101.20 | March 15 | 97.23 | March 16 | 97.99 | March 17 | 101.47 | March 18 | 101.06 | March 19 | - | March 20 | - | March 21 | 102.36 | March 22 | 104.53 | March 23 | 105.21 | March 24 | 105.04 | March 25 | 104.89 | March 26 | - | March 27 | - | March 28 | 103.54 | March 29 | 104.34 | March 30 | 103.80 | March 31 | 106.19 |
Graph Of Oil Price March 2011
Data for table and graph: (Y Charts)

So I will start at the beginning. I will first explain the tops and peaks and the reasons. The first peak is on march 2, where the WTI crude oil spot price stands on 102.27, is quite a bit more than on the day before (99.63). This is because of the political uprisings against Khadafy in Libya. Libya is a big supplier of oil, but at
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Gm 545 Project 1
    • 382 Words
    • 2 Pages

    Gm 545 Project 1

    Gas prices fluctuate due to oil prices and the anticipated supply and demand worldwide. Whenever there is political unrest in a major oil producing country you will see an increase in gas prices due to the demand of oil potentially produced decreasing. Very rarely do gas prices follow the general supply and demand because if they did gas prices would be lower currently. In my hometown of Augusta, GA gas prices are always below the national average and with us bordering South Carolina many Augustans travel the short distance to pay lower prices in South Carolina which are usually $0.10-$0.15 cheaper. Much as the rest of the world goes whenever there is a threat to the supply of oil, regardless of having a surplus currently, the gas prices in this area see a $0.10-$0.20 increase sometimes within a 30 minute period.…

    • 382 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    BTEC P4 Unit 7 'Increased costs.' Give 3 examples including cause and impact.
    • 567 Words
    • 3 Pages

    BTEC P4 Unit 7 'Increased costs.' Give 3 examples including cause and impact.

    Nowadays the war in Iraq has been effecting the oil price in a negative way.…

    • 567 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    ECON 545 Project 1
    • 730 Words
    • 3 Pages

    ECON 545 Project 1

    Crude oil prices are determined by worldwide supply and demand, which is why as countries around the world developing rapidly, the demand for and price of gas increases rapidly. Natural disasters and Political conflicts in major oil producing regions such as Saudi Arabia, Iran and Iraq can also affect the price of gas. The Organization of Petroleum Exporting Countries (OPEC) also has significant influence over the price of crude oil because its members produce over 40% of the world’s supply of oil and own more than two-thirds of the world’s estimated oil reserves.(2)…

    • 730 Words
    • 3 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Course Project - Part 1
    • 637 Words
    • 3 Pages

    Course Project - Part 1

    Below is the supply and demand curve that we review when observing gasoline prices going up in the field. Basically under normal conditions we see the equilibrium price being where supply intersects demand at EQ and EP. However, as we experience issues where manufacturers end up not supplying as much fuel as before we see supply shift to the left and this is seen in the supply graph S2. We also see equilibrium price move up because of this from EP to EP1. An example of such an incident occurred during the Katrina Hurricane back in August 2005. The hurricane damaged the 30 oil platforms and the closure of nine refineries. This reduction of oil production reduced the amount of supply of gasoline for the nation. Thus rising the price of gas nationwide.…

    • 637 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Better Essays

    Gm545 Project 1
    • 846 Words
    • 4 Pages

    Gm545 Project 1

    Crude oil and petroleum product prices can be affected by events that have the potential to upset the flow of oil and products to market, including geopolitical and weather-related developments. These types of events may lead to actual disruptions or create uncertainty about future supply or demand, which can lead to higher volatility in prices. The volatility of oil prices is inherently tied to the low responsiveness or "inelasticity" of both supply and demand to price changes in the short run. Both the stock of oil-using equipment and oil production capacity are relatively fixed in the near-term. It takes years to develop new supply sources or vary production, and it is very hard for consumers to switch to other fuels or increase fuel efficiency in the near term when prices rise. Under such conditions, a large price change can be necessary to re-balance physical supply and demand following a shock to the system.…

    • 846 Words
    • 4 Pages
    Better Essays
    Read More
  • Good Essays

    Eco 365 Week 1
    • 708 Words
    • 3 Pages

    Eco 365 Week 1

    The following information within this article relates that there is in fact a variable that continues to cause and affect our Oil and Gasoline pricing. These pricing effects can either the cost of oil per barrel; the higher the barrels are the higher the cost of fuel will be indicated. The other flip side to this equation is that if the demand falls off of the expected earnings we can also be affected…

    • 708 Words
    • 3 Pages
    Good Essays
    Read More
  • Better Essays

    Business 308 Statistics for Managers
    • 1197 Words
    • 5 Pages

    Business 308 Statistics for Managers

    The most significant factor in the production of gas is crude oil. The prices in gas fall and rise due to the cost of crude which is established by supply and demand on the global commodities market. During the recession in 2008 and 2009, the gas prices went down because of less demand. However, as the economy progresses, the demand is rising. In the meantime with conflict in the Middle East and North Africa, the supply is at risk. With both the rising demand and the risk of reduced supply, gas prices are increasing. Crude oil comprises of more than 65 % of what Americans pay at the pump. In addition, gas prices are impacted by costs of refining, distribution, government and marketing taxes (API, 2013). This information is especially important to those who…

    • 1197 Words
    • 5 Pages
    Better Essays
    Read More
  • Good Essays

    Week 1 Eco 365
    • 635 Words
    • 3 Pages

    Week 1 Eco 365

    According to Glantz (2012), the utilities derived from the article have to do with the way the community consumes the oil that is being used. When the gas prices are up there is a necessity for the oil or fuel and it will most likely cause the prices to go down. In contrast, when the prices of the oil go down, there will be more of a demand and a possible shortage of oil because the demand would have been great.…

    • 635 Words
    • 3 Pages
    Good Essays
    Read More
  • Good Essays

    econ 545
    • 1206 Words
    • 5 Pages

    econ 545

    But in the news, you continue to hear of crude oil shortages. Big Oil Companies reported huge profits on high gasoline prices continuously for the past 4 months. The Big Five oil companies made $36 billion in profits in the second quarter of 2011. Consumers are now looking for alternative solutions in transportation because of the unsavory price fluctuation of gasoline prices while oil companies post major profits. Another factor affecting the price of gasoline is the price of the crude oil the raw material that the gas is produced from. On the marketplace many factors can affect the price of the crude oil and the gasoline that…

    • 1206 Words
    • 5 Pages
    Good Essays
    Read More
  • Powerful Essays

    Iraq War Cost
    • 2632 Words
    • 11 Pages

    Iraq War Cost

    The “Financial Times” magazine in 2007 revealed that Iraq could have almost double the reserves of oil than it had earlier been thought. The war thus meant that it could be hard in the future to deal with Iraq’s security even to matters that concerned its oil and by products. This means that the global prices of oil could be affected by the war as it had a direct affect to its production (Gafarli, 2007). The oil prices have since increased steadily and have continued to sell high since the war began. The prices of crude oil do not affect just the United States, but the entire world. A good example of a country that is suffering from this is India. India’s oil demand increases at a steady rate of 4-5 percent annually. Iraq has since ruled out any subsidized oil prices to India, stating that the law of the land does not allow them to do so. This has adverse effects on the economy of India as it imports about 20 million tons of oil from Iraq every year. This means that Iraq is the second largest supplier of oil crude oil to India (Lee,…

    • 2632 Words
    • 11 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Glass Transition (Simple Lab Report)
    • 1169 Words
    • 5 Pages

    Glass Transition (Simple Lab Report)

    The glass transition temperature of polymethylmethacrylate ( PMMA, Perspex) is measured using static and dynamic method while the glass transition temperature of rubber of different size is measured using only dynamic method. The glass transition temperature Tg of Perspex is found to be 90°C using the static method and 160°c using the dynamic method. On the other hand, the Tg of rubber is found to be -30°C.…

    • 1169 Words
    • 5 Pages
    Powerful Essays
    Read More
  • Good Essays

    Oil In The Middle East
    • 435 Words
    • 2 Pages

    Oil In The Middle East

    As an industrial superpower, oil is an extremely important factor in maintaining that status. The United States and the entire world depend on oil to run their machines and engines. The Middle East produces over 60% of the world's oil supply. Demands for this oil increases every year. The United States relies on the Middle East for about 14% of all oil needs, but that percentage keeps on growing. As disaster and lack of reserves damage our own oil reserves, the United States needs more options for obtaining oil. The Middle East is the cheapest to extract. We need to maintain a healthy relationship with these Middle Eastern nations to be able to use these oil reserves.…

    • 435 Words
    • 2 Pages
    Good Essays
    Read More
  • Good Essays

    Saturation Line
    • 709 Words
    • 3 Pages

    Saturation Line

    * I heated the boiler with both taps open. When boiling started, I closed the side tap.…

    • 709 Words
    • 3 Pages
    Good Essays
    Read More
  • Better Essays

    Gas Prices
    • 1782 Words
    • 8 Pages

    Gas Prices

    Gas prices have been on a rapid rise the last few years and not many people are happy with it. It limits those on a budget for how much they can do and how much they are willing to drive. Lately, gas prices have been fluctuating in price and going up but are more recently going back down, which gives people a little more flexibility at times in their schedule. It lets people do things such as travel and more, that they were not able to do last summer when gas prices were right around as well as over $4.00 a gallon, which made people cut back on those unimportant things. Supply and demand plays two major factors that have an impact on what we might see gas prices at. Ash says, “Gas prices are expected to continue to drop leading to Election Day and continue to fall through the end of the year (Richardson, 2012).” According to Clifford Krauss, oil experts have been talking about how since Israel and Gaza are not oil-producing areas, that we should not see oil prices spike up and cause us to pay more for a gallon of gas (Krauss, 2012). As gas prices have been steadily increasing, it has had a negative effect on the consumers that use it daily.…

    • 1782 Words
    • 8 Pages
    Better Essays
    Read More
  • Satisfactory Essays

    Nfl Financial Ratios
    • 627 Words
    • 3 Pages

    Nfl Financial Ratios

    National Foods Financial and Operating Highlights: | Unit | 2012 | 2011 | 2010 | 2009 | 2008 | Profitability Ratios | | | | | | | Gross Profit Ratio | % | 32.52 | 28.51 | 29.55 | 29.97 | 32.20 | Operating Profit to Sales | % | 12.66 | 8.83 | 5.76 | 8.18 | 9.48 |…

    • 627 Words
    • 3 Pages
    Satisfactory Essays
    Read More

Related Topics