Demand and Supply of Oil

Table of ContentsPage1.Introduction32. admit of cover33.Supply of Oil54.Supply and Demand Equilibrium for Oil65.Conclusions66.References7IntroductionOil is one of the most valuable and precious energy re kickoffs in the earth, and in order to assess the juvenile developments in the wrong of Oil in world trade, it is eventful to analyze the underlying forces of convey and supply. As energy is an master(prenominal) vehicle of production and growth, Oil is still its main source and has no competing substitute to replace it altogether in the predictable future. The UAE is one of the biggest suppliers of the Oil in the world, and as a component of OPEC charge and supply of Oil is controlled by the 10 members of the OPEC and Non-OPEC countries.

YrOil PriceTq Oil DemandTq Oil SuppliedOPEC SuppliedOPEC Share002476,000,00076,900,00025,400,00033%1Q2776,300,00076,300,00026,200,00034%2Q2975,300,00075,400,00026,700,00035%3Q24.576,500,00076,500,00025,201,00033%4Q2577,600,00076,900,00024,201,00031%012176,400,00076,300,00023,201,00030%Demand of OilDemand for Oil is a derive demand according to its many diverse uses. Oil can be utilize to satisfy the needs of Mankind . Oil is used as the main source of energy and as the study input in all petrochemical industries, which could provide us with our needs. Demand for Oil within a certain band of exploit and within a certain time interval is inelastic.



This room that if there is a relative ontogeny in its price within a certain affordable band, the relative replace in the quantity demanded for Oil will turn bulge to be less than the relative change in its prices. So quantity demanded for Oil related to its price. Consumers are rational ending makers, therefore if price of Oil is acceptable they decide to demoralise more to maximize their benefits and vise versa.

The graph bellow shows the price of Oil Verses the Demand of Oil by consumers.

The effect of increase in demand (excess of demand) for Oil causes the curve to shift inbound and leading...

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