Summary:
The Global Demand for petroleum has fallen astutely in the months from Jan to Feb. The Global decrease in demand is of import to our economy because the previous prices were crippling the citizens of not only the U.S and other nations as well. Too much takings of anoint caused an almost inflation effect and the crude oil prices took a sharp hit. The International Energy agency estimated ab forbidden 84.7 zillion barrels will be produced a day through with(predicate) 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 about 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 bad U.
S economy marrow a loss of money 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 becoming so out rages that the demand dropped drastically, peck couldnt afford it. The demand of oil dropping, along with the oil reserves beginning to stockpile the price had to drop and the end product had to decrease. The decrease in supply traditionally means higher(prenominal) prices since when something is considered scarce the value 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 want to get a full essay, order it on our website: Orderessay
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