Supply and Demand on OilEssay title: Supply and Demand on OilSupply & Demand on OilOil 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
The Oil in the Middle East (Qatar)
Qatar is in a state of economic turmoil, as it has undergone a major transition from an agricultural and mineral-sourcing society to a petroleum and energy based society. An unprecedented change is taking place in the world oil market. The increase in demand, thus, seems to be caused by the increased demand for oil at home. Oil is used extensively in agricultural purposes, in industrial production and in the economy of most of the world. The rise in oil-related exports has been attributed to an increase in energy supply and demand for oil, and other commodity prices, as well. This change in oil price and demand in the Middle East (Qatar) was revealed by: The main economic factors that led to the increase in oil demand in the Middle East. For one, the demand for oil has changed. For example, in Qatar and the other oil producing countries of the Gulf, there is a very high level of oil demand in the home region of the country, especially in the region of Arabia. The oil in the area of Kuwait has a lot of volume and is used mainly for heating and power, or for food etc. This also makes the area of power production extremely poor, which is why some OPEC and other non-OPEC nations are forced to increase their production in order to reach the demand in Qatar. The demand in Kuwait is extremely high and has changed a lot during different times of time. During the early 1990s, Kuwait’s oil reserves and oil reserve was very low compared to most other Arab countries. Then from 1997 – 1995, the prices started to rise, and since then, Kuwait has almost completely changed from a very low price of oil to a very high price of oil. At the same time, the demand in the area of oil reserves and oil supply is high and increased, so the price of oil is rising and increasing, and the oil stocks are decreasing, which is the main reason for the increase in demand. According to the recent economic news article in the Daily Star magazine, Kuwait could have a net economic surplus of $200 billion in 2014, which would have a huge impact on the country’s GDP, but it does not. The report said, “Oil production in Kuwait dropped by 2% in the third quarter of 2014 from 2011-16, as Kuwaitia used to run a large production facility while making it the world’s largest producer of oil and gas.” [GMA (Global Media of the Energy Economy)]
Oil prices in Saudi Arabia
Oil prices in Saudi Arabia are falling from a market low of 6.9 Kb/d in May 2004 to a low of 2.5 Kb/d in May 2015. The drop is a sign of the decline of some OPEC countries such as the United Arab Emirates. This is not surprising because, due to their high oil prices, the Saudis are very important sources of revenues in the economy and for that reason they need to be given money. However, in order to increase their purchasing power and to decrease their price of oil at the same time, Saudi Arabia’s oil reserves (which is increasing at the same time) is decreasing as a percentage of oil production. While Saudi Arabia has always had a large natural reserve where it was rich in gold, its production is very limited, and it also needs to develop new sources of oil and not be taken for granted. Consequently, in order to increase its production, the government of Saudi Arabia needs to also increase its purchases of oil in order to create a new source of revenue. In fact, we all know that the Saudi government’s oil purchases are not an issue which can be solved by investing in other countries. Saudi Arabia should get its money from the oil producing countries which are not participating in