Oil Market Essay Example | Topics and Well Written Essays - 1250 words

Oil Market - Essay Example This application, in intermediaries’ purchasing patterns, may also play a role in determining the prices of crude oil from exploration companies (Organization of the Petroleum Exporting Countries 5). Oil supply Global supply of oil has been another significant factor in the oil market. A review of growth rate in the produced volume by different regions identifies volatility in supply volume with a significantly lower growth rate in the year 2013. Supply growth rate in America increased from the year 2011 to the year 2012 but the rate, while positive, reduced in the year 2013. Growth rate in Europe, in the past three years has however been negative with a reducing rate, an indication that oil productivity in the region is declining. Even though at lower rates than those reported in non OPEC European countries, countries in Pacific Asia have similarly reported negative percentage growth rates in the past three years. Other oil producing regions such as other parts of Asia, †Å"Latin America,† â€Å"Middle East,† â€Å"Africa,† and FSU have however registered minimal changes in produced volumes with more negative percentages and the trend in the non-OPEC countries indicating a general reduction in oil supply in the past two years (Organization of the Petroleum Exporting Countries 34). A slight increment in supply volume has however been forecasted among non-OPEC oil producing regions. Oil supply from OECD countries has however been increasing while supply volumes from developing counties has registered a reducing trend between the years 2010 and 2012 by assumed an increasing trend in the year 2013. Supply volumes from former Russian States and other non-OPEC regions have also reported increasing... This paper describes oil prices, oil supply, demand, determinants of oil price, personal opinion. According to the paper trend in global oil prices has remained volatile over the past six months. Data from OPEC identifies three measures for oil prices over the period and the measures, though not equivalent over the time shows a consistent trend to support the hypothesis that prices in the oil market are relatively volatile. Global supply of oil has been another significant factor in the oil market. A review of growth rate in the produced volume by different regions identifies volatility in supply volume with a significantly lower growth rate in the year 2013. Demand is another significant factor to the oil market. The global demand has a predictable trend that can be used to forecast future levels of demand. Price mechanism is also significant to understanding the oil market through factors that determine the prices and the factors’ interaction to dictate the prices over time. Region of utility is one of the factors to oil prices and the level of industrialization determines price volatility by regions with demand shock as the key moderator. Oil prices in developing countries responds quickly and faster to demand shock as compared to prices in developed countries and this knowledge can be instrumental to oil distributers. The oil market is a competitive market that is majorly regulated by demand and supply forces. Data also indicates massive utility in OECD countries, especially in America, and significance of developing countries in determining global prices. Consistency in the market’s data trend means that it can be used to guide investment decision and a potential market is identifiable in America that has high demand for oil. Analysis of the market in developing countries is also necessary for predicting prices towards investment decisions.

The implications of the major determinants of demand and supply to Essay

The implications of the major determinants of demand and supply to domestic house building industry - Essay Example This paper starts with understanding this market. Here we will discuss about Porter’s Five Forces Model and try to understand the kind of customers marketers have in the domestic housing sector. This section would be followed by the discussion on determinants of demand and supply in the housing industry. Once we have understood the market structure and supply-demands we will be discussing various factors like economic, social, legal and environmental which affect the industry. This will be followed by the analysis and conclusion. The industry is made up of around 192,404 construction firms, 164,000 of which have less that 24 employees. Just 56 firms have more than 1,200 employees. (Source: Construction Statistics Annual 2002/CITB). 2 There are around 192,404 small and big firms. 56 firms have employed more than 1200 employees while 28,348 firms have employed 25 or more than 25 people and rest 164,000 firms have employed less than 24 people in their organization. Around 500 firms work for overseas contracts also.4 The segment rivalry and exit barriers are high. As it is almost mature industry in Britain, the number of suppliers and rivalry among them is high. This gives an added advantage to the constructor to negotiate for the quality and the price of goods supplied by them. The switching cost from one supplier to another is usually high. Buyers’ power in the case of houses is limited. There are several reasons for this i.e. increasing demand of house, lesser number of buyers, buyers not connected to each other, lack of information and others. The threat of substitutes is less and within the category. Housing requirements of an individual or family can be very specific leaving no room for many or instant substitutes. It depends upon the quality, price and availability of the house. The consumer behaviour can be divided on the basis of the type of consumers. They can be divided on the basis of