The Oil Price Essay

1187 words - 5 pages

The oil priceIntroductionThis essay will introduce the oil price in 2011 and predict the price in 2020. In the contemporary society, the problem of petroleum was still a controversial issue in the economic world. Due to a variety of reasons, such as wars, population, and technology innovation, the price of oil always changes. In a world, the price of fossil was influenced by demand and supply. This report will give a reasonable tend in the future, according to historical figures and relevant data. In addition, it will analyze how to affect the oil price through the fluctuation of demand and supply.Objectives of the project The main objective of this essay will evaluate whether the oil price rises or decline in 2020 in comparison with 2011. Initially, the price information of oil in the last twenty years will be collected on the Internet. Moreover, according to the historical figures and data, the essay will summarize reasons of the oil price rise or decline. Finally, this essay will point out the future tend which combines with the theory and current situation.The reason for selection of the topic is that the oil price plays a significant role in the present global market. It directly influences people's work and life. Meanwhile, the oil price changed from the oil industry established. Especially, the oil price was fluctuated in recent years. During the increasingly debt crisis of Greece and limited Iran's petroleum exports, the problem of oil price is still drawing the global attention.Sources of informationThis essay will give some professional knowledge from textbooks, such as 'Principle of Economics (Mankiw, 2008)' and content of PEST analysis (Worthington and Britton, 2009). These textbooks will be found from library and E-library of UCLAN. Moreover, this essay will describe the relevant data and news from journals and website. For example, there are some journals related about the oil price, which are 'World Oil (2012)' and 'National Petroleum News (Reid, 2012)'. In addition, there are some organizations and companies affecting the oil price. It would be found a huge numbers of detail market reports form some official website such as OPEC (2012) and BP (2012).Moreover, this essay will provide tables, charts, histograms and graphs from the professional statistics. As the statistical information is objective, it reacts market conditions. These statistics will indicate from BBC news (2012), Financial Time News (Chazan, 2012) and some official websites such as 'International Energy Agency (2012)'. It can acquire information about crude oil price in the world.Evidence of citing to support discussionFirstly, the essay will use PEST analysis, which is a useful tool to understand the external environment. As a consequence, professional theories and relevant reports would be quoted from books and E-library. On the other hand, there is an important principle about supply curve and demand curve, which belongs to principle of economics. In the market...

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