Causes of Rising Global Oil Prices Essay - 954 Words

Among the factors that often blamed the current price increases embrace the renewed geopolitical concerns in the Middle East, declining excess capacity in oil production, the production cuts agreed by the Organization of Petroleum Exporting Countries, the devaluation of U.S. dollar against other most important currencies, increased demand from rising countries and the noteworthy expansion in provisional dealings on oil futures market. Traders and speculators can earn from these changes in values through purchasing or selling Crude Oil CFDs (Kanter, 2008). Over the long term, Crude Oil is likely to go after strict lines of trend, if one is able to classify a trend appropriately then it is possible to get earnings from those moves by†¦show more content†¦The head of the Democratic majority in the Senate, Harry Reid, should also allow a vote on a Republican that would allow States the northeast and northwest to opt for offshore drilling, and a portion of their rights operations. Such flexibility would be a major shift in U.S. energy policy. For 26 years, Congress has renewed every year because the ban to drill along the coasts of the Atlantic and Pacific and eastern Gulf of Mexico. Today, offshore drilling off the U.S. coast is limited to the western Gulf of Mexico, where oil and gas for decades. However, the expansion of offshore drilling has become a credo reflected in the Republican campaign for the presidential and legislative elections in November, although this measure has little or no impact on gasoline prices for years (Caffentzis, 2008). Processes offshore drilling techniques used differ somewhat down, but the marine environment requires specialized equipment and leads to services. Exploration consists of geophysical surveys of large areas, made from aircraft and / or ships, core samples taken using various methods, seismic blast concussion or diverse devices, and test drilling for geological data. After the formations drilled selected from drill ships or temporary platforms, wells are drilled to delineate additional oil or gas discoveries and production tests are very broad to determine the parameters ofShow MoreRelatedRising Gas Prices1158 Words   |  5 Pagescontribute to rising gasoline prices. The major cause for increasing gasoline prices has to do with refining capacity. Even if oil were inexpensive, we would still have a problem converting it into the gas that fuels our economy. That is what keeps the gas prices high. When gas supplies are short, due to an â€Å"inability to refine crude oil into gas efficiently,† prices increase. This is a component of supply and demand economics. In a positive aspect, rising gasoline prices do serve a purpose;Read MoreEssay about Eco 365 Week 1692 Words   |  3 Pagesanalysis: Pump Prices and Oil Prices: A Tale of Two Different Directions By Ernest Guillen University of Phoenix ECO/365 Ver.4 Principles of Microeconomics Instructor: Dr. Christina Espinoza-Alguera Abstract: The following article is regarding what is most important to everyone around us regarding the pricing for gasoline at the pumps. This is a topic that concerns most people on this planet, why are the prices for gasoline so high and is it regarding the greed of oil producingRead MoreEffects Of Oil Prices On Global Economy1200 Words   |  5 PagesStudent’s Name: Professor’s Name: Course: Date: Effect of Oil Prices on Global Economy Evidently, the connection between fuel and the world has resulted in an intimate relationship between global economy and the prices of oil. In this regard, the world is increasingly growing dependent on petroleum and, as such, it follows that matters concerning fuel prices are bound to affect the global economy. Be it a slump or a rise, oil prices factor significantly in every country regardless of if the givenRead MoreThe Effects Of Oil Prices On Economic Growth1644 Words   |  7 PagesCrude oil is still a driving force of the world economy today. Changes in the price of oil have significant effects on economic growth, development and welfare in countries. Oil price volatility has had its ups and downs in the past year as well as the past decade. Oil prices fluctuate for a number of reasons. One reason why oil prices fluctuated is because of rising global economic activity. It can increase demand and push prices higher, while rising production can cause prices to decline. DuringR ead MoreThe Economic Impact of Rising Oil Prices in Automotive Industry1750 Words   |  7 PagesThe Economic Impact of Rising Oil Prices in Automotive Industry The rise in the oil prices plays a major role in the automotive industry. â€Å"The world consumes over 82 million barrels of oil per day (BPD), with the united states taking roughly 20 million BPD† (McFarlane). Oil provides 97 percent of the transportation fuels that helps to run the cars, trucks and other vehicles in the nation’s highway (Heinberg). Thus, when the price of the oil rises, it clearly concerns the auto industry because theRead MoreEconomics : Falling Oil Price1585 Words   |  7 Pages Political Science Falling oil price Due date There has been a sharp drop in the prices of oil. Over the past decade there has been a recurrent drop that has been recorded. Estimated the place effect has been in the range of 0.5 to 1 %( dadush 2015) the drop in the prices has have caused contending large deficits in many countries especially those which receive oil exports. The effects are both negative and positive depending on the boost of the global aggregate demand. Non OPEC countriesRead MoreEconomic And Social Implications Of High Inflation Essay1555 Words   |  7 Pageswell-known financial crisis in Venezuela since 2013 due to the downturn in global oil prices. Definition It appears that the definition of the word â€Å"inflation† in economics has changed over time. According to Webster’s New Universal Unabridged Dictionary (Webster, 1983) the definition of â€Å"inflation† is: â€Å"An increase in the amount of currency in circulation, resulting in a relatively sharp and sudden fall in its value and rise in prices: it may be caused by an increase in the volume of paper money issuedRead MoreThe Long Run Economic Growth Of Society1526 Words   |  7 Pagesthat occurs when the price of energy resources is sharply increased affecting the supply of major consuming sectors such as the national energy grids and transportation. High energy prices can also result high unemployment rates and rising food prices. A very well-known example of such a crisis was the 70s oil shock, which began in October 1973 when the members of the organization of Arab Petroleum Exporting Countries (OAPEC) proclaimed an oil embargo based on political causes against the United StatesRead MoreIs Global Warming Due to Human Actions? Can the Human Race Take Action to Stop Global Warming?1529 Words   |  7 PagesNovember 19, 2012 Outline Is global warming due to human actions? Can the human race take action to stop global warming? Introduction Thesis Statement: Yes, human actions are definitely a factor in global warming. The fact that there have been natural cycles of climate change since earths formation, in past and recent centuries humans have influenced global climate change through the emission of greenhouse gases. The actions that humans should take to stop global warming are to reduce the greenhouseRead MoreInflation: The Rise Fall of The American Economy Essay1714 Words   |  7 Pagesthese stores and noticing the prices have steadily increased over the past few months. This is called inflation, and it is causing many problems in the United States. There are three different types of inflation: demand-pull, cost-push, and built-in. Demand-pull inflation occurs when prices increased because of such high demand. Cost-push inflation is when prices surge resulting from high input costs. Built-in inflation is when prices continue to rise after any natural causes. The inflation occurring