About Oil Prices

Mayoor Patel asked:


Crude oil prices behave just like any other commodity with wide price swings of shortage and oversupply. The crude oil price cycle can extend over a long period of time depending on the non-stop change in demand for oil as well as oil supply produced by Organization of Petroleum Exporting Countries (OPEC) and non-OPEC oil supply companies. Oil price history shows that the petroleum industry especially in the United States has been heavily regulated in terms of production and price controls throughout the duration of the 20th century.

During the post World War II era, oil prices in the United States have averaged $23.57 per barrel, which is already adjusted for inflation to 2006 dollars. Without price controls, the U.S oil price would have been over $25.56. During the same post war period, the average price for domestic and adjusted world price of crude oil was $18.43 in 2006 prices. This exactly proves that only 50% of the time from 1947 to 2006 have oil prices exceeded the $18.43 per barrel mark. It was only then in March 28, 2000 when they accepted the $22-$28 price band for OPEC’s supply of oil, did oil prices exceed the $23.00 per barrel in response to the ongoing conflict in the Middle East. With limited supply of crude oil, OPEC abandoned its price band and for almost 3 years, OPEC was in no position to stem a surge in oil prices which was similar to that of the late 1970’s.

If we look at the statistics in a long term view, the oil price is practically much the same. Since 1869, US crude oil prices adjusted for inflation have averaged, $20.71 per barrel compared to other world prices of $21.57. Only 50% of the times were the US prices and world prices below the average oil price of $16.59 per barrel. If we would use the long term oil price history as a guide, those in the upstream segment of the crude oil industry should shape their business so that they would be able to operate with profit, below $16.59, 50% of the time.

Oil today represents 2% of global GDP, not the 8% represented in 1973. So what does oil price history teaches us? Greater oil prices give people an incentive to make more effective use of oil and for the global economy to move toward more services and information technology and off from manufacturing.

Annette

Latif Qapdia asked:


With un-natural rise of gas prices and sub-sequent inflation of daily used products, though it might not effected rich men but mediocre is.A statistics tells that online sales are increased with increase in gas prices. The reason is you don’t need to drive to buy an item. and so you save money by ordering it at home.As a mediocre, along with planning and cutting down expenses to match the earning power we should look ways to save money by meanings that are easily available.In France the highest allocation of household income is for grocery budget. As its a social welfare state and people don’t need to worry about their health care along with many other benefits. So biggest part of the income goes to grocery items. If we do accounting then most of our budget every month goes for shopping items. it may include but not limited to grocery, electronics, gadgets etc. Printable coupons or Coupon codes terms is quite in use these days. Most of the people has access to internet these days.  If you need to buy anything, from grocery to electronics to auto parts you may search for coupon codes associated with that product you are looking for.Well, a coupon code is an electronic coupon, the only difference with traditional being that instead of a sheet of paper you use to pay with at the cash-register, you insert a few digits and letters into a box in order to have some benefits.You may search on internet for the Free coupons for electronics in your area or available with an online store. You may reduce your restaurant dinning to $2 by finding a coupon code of a restaurant.In fact many shopping malls start some special discounts or they deal with a company to associate with them by offering discount coupons. As such not all the coupons are for every one. Sometimes you have to be member of one service, organization or club in order to get and avail coupons. But if you may get it by some reference you may avail it as well. On internet many people get coupons from a particular store, or a club or gas stations or restaurant. As they not always plan to use it they feature it on their web site.So whenever you need to buy something you may always go online, google your product along with coupon code string. With some research you may find a good deal or coupon and it may save you a few dollars. Applying this technique regularly and at the end of month you might have saved hundreds dollars and might be you never need to cut down your allocations instead just smart planning and search.

Elmer

Eddy T asked:


Oil price at the pump is based on supply and demand wheras the price in the oil market is subjected to speculations and the value of the US dollar. OPEC has said that supply of the oil is sufficient for its demand.

Sandra