Essay About Price Of Oil And Member Of Opec

Supply And Demand On Oil
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Supply & Demand on Oil
Oil is very valuable to the Earth but also at the same time it is scarce, and in order to check out the recent developments in the price of Oil in world trade, it is important to analyze the underlying forces of demand and supply. As energy is an important vehicle of production and growth, Oil is still its main source and has no competing substitute to replace it altogether in the near future. The UAE, United Arab Emirates, is one of the biggest suppliers of the Oil in the world, and as a member of OPEC, Organization of the Petroleum Exporting Countries, price and supply of Oil is controlled by the members of the OPEC and Non-OPEC countries. The change that is shown in many of the graphs displayed in the article is due to price changes. However you also have to figure the other changes such as the prices of other products, income, population, cost of production, etc. There is always a point that shows us that a certain price level is accepted by both consumers and suppliers, and in the Oil industry such equilibrium is always favored for many reasons such as to prevent Oil product inventory and refining plants in consumer sides and for more crude Oil exploring and development in producer side. Therefore OPEC always tries to keep demand and supply in balance. After comparing the graphs in this article, I believe that you will see Gas Pumps go dry due to the fact of rising prices. Even though OPEC tries to keep things balanced, the prices will still rise due to the other factors that I mentioned above.