Economics

Bibliography- Pepitone, Julianna. Oil Plummets On Global Demand Report. 11 Feb.. CNN. 1 Mar. 2009 . Summary: The Global Demand for petroleum has fallen astutely in the months from Jan to Feb. The Global shine in demand is of merchandise to our economy because the previous charges were crippling the citizens of not only the U.S and new(prenominal) nations as well. Too much takings of anoint caused an close to inflation effect and the ill-mannered rock fossil oil prices took a cracking hit. The International Energy agency estimated ab forbidden 84.7 billion barrel will be produced a day through with(predicate) come out the month of February, this number is down 570,00 barrels from January. The I.E.A is in like manner expected to declare 1,000,000 barrels a day all over the year, a drop of almost 1.1%. This sudden loss in demand has caused the price of crude oil to drop 1.61 a barrel to 35.94. This current price is way down from the 147.27 prices it achieved in July 2008. The steep drop in grease-gunoline prices most possible occurred due to concerns of a recession occurring with in our country. The absurd prices that masses were paying at the gas pumps was taking away from income that plurality could be putting into the economy. A dingy U.

S economy marrow a loss of currency through out the military personnel and main oil suppliers finally took note of the toll that gas prices were having on the pockets of Americans. The prices were bonnie so out rages that the demand dropped drastically, peck couldnt soften it. The demand of oil dropping, along with the oil r eserves setoff to stockpile the price had t! o drop and the end product had to decrease. The decrease in supply traditionally means higher(prenominal) prices since when something is considered scarce the look upon of that commodity join ons. Same as with Gas, so the oil companys thought is that by lessen the out put the demand of oil will increase as will the prices and there profit. Opec is expected to cut the production of barrels to 2.2 million a day through out January and...If you destiny to get a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper