Write a paper about how the supply of oil on the world marke

Write a paper about how the supply of oil on the world market effects the gasoline costs that you pay when you put gas into your vehicle.Your paper must reference the activity of oil production in the past several years, as well as the current situation in the world. What nations are being effected most by the current price of a barrel of oil.

Your paper must be at least one page in length.

A title page is mandatory, as is a reference section.

Solution

·         The reasons attributed to this crash in oil prices are, first, increased production in non-OPEC (Organization of the Petroleum Exporting Countries) countries, primarily the US, and second, the reluctance of OPEC to cut production. Slowing economic activity in regions such as Europe, Japan and China is also said to be contributing to the decline.

·         The financial market is busy speculating whether oil prices will settle at the present level or head further south. Although how low the oil prices can go will only be known at a later date, the decline so far has different implications for different economies.