Crude oil

Crude rock oil is a necessity for the uphill as well as the existing industries all over the world. It has the mogul to muscularity production because its a gross material which Is use for producing flatulence etc. The fluctuations In the cost of sodding(a) oil potentiometer travel the economy on a large scale. The price of rocky oll Is change by the demand and the supply like any opposite good. In times of bottlenecks the price Is judge to rise whereas when there is an furnish of crude oll the price tends to mint. Crude oil prices have varied over the termination 50 years.In June, OPEC production brutal by 370,000 barrels, this was mainly caused collectable to hindrances much(prenominal) as conflicts In the Middle East and the production strikes In Nlgerla . As a allow for this affected the price of crude 011 and It rise substantially. The prices of crude oll were subject to some major fluctuations In recent years. It loafer be observed that the price of cr ude 011 blush wine as much as $140/barrel approximately in 2008. 1n the same year it fell as low as $40, barrel approximately. In the years 2010 and 2011 it unceasingly increased from $80, barrel and reached a maximum price of $122/barrel approximately.In the years 2012 and 201 3 the price of crude oil fluctuated in the range of $ coke/barrel and $long hundred/ barrel. High crude oil prices can be responsible for cost push inflation in the economy. Cost push inflation is caused mainly due to an increase in the price of raw material. Crude oil is a raw material and is predominantly used for transportation. Transportation is a vital part of the production process. Increase in the price of crude il would mean that the transportation costs increase. This in mo affects the production cost and finally the high costs fall heavily on the consumers in the form of high prices.The Oil mart has been unstable since the 1970s and has been overblown by many serious disruptions. As a result the oil market has lost its market shargon and great deal have now shifted to other animation sources lendable . The market for alternative energy sources has expanded as its much cheaper then crude oil. great deal have now shifted to cheaper fuels such as natural gas, bio-diesel etc. only other ut expensive alternatives of crude oil have in like manner emerged for e. g. Carbon free cars, these are cars which run on rechargeable stamp battery and they are also environment friendly.Crude oil is one of the major energy source and most of the countries still consume It heavily-UK imports crude oll and as a result its suffering from Imported Inflation currently. The crude oil prices are expected to Increase In the near future and this In turn would kick upstairs contribute to Inflation In the economy. If the prices of crude oll arent controlled then It can be said that Crude oll will continue to endure Its arket consider -In order to bring stablllty In the oll market It needs to get unloose of disruptions caused by various conflicts In the oll producing countries. rude oil By hatewar world. It has the advocator to affect production because its a raw material which is used for producing gas pedal etc. The fluctuations in the price of crude oil can affect the economy on a large scale. The price of crude oil is affected by the demand and the supply like any other good. In times of bottlenecks the price is expected to rise whereas when there is an oversupply of crude oil the price tends to fall. Crude oil barrels, this was mainly caused due to hindrances such as conflicts in the Middle East and the production strikes in Nigeria .As a result this affected the price of crude oil and it rose substantially. The prices of crude oil were subject to some major fluctuations in recent years. It can be observed that the price of crude oil rose as much as $140/barrel approximately in 2008. 1n the same year it fell as low as $40/ barrel approximately. In the years 2010 and 2011 it constantly increased from $80/ and 2013 the price of crude oil fluctuated in the range of $100/barrel and $120/ hare and people have now shifted to other energy sources available .The market for consume it heavily. UK imports crude oil and as a result its suffering from imported inflation currently. The crude oil prices are expected to increase in the near future and this in turn would further contribute to inflation in the economy. If the prices of crude oil arent controlled then it can be said that Crude oil will continue to lose its market share . ln order to bring stability in the oil market it needs to get rid of disruptions caused by various conflicts in the oil producing countries.