Crude oil prices Research Paper Example | Topics and Well Written Essays - 750 words

bumpy petroleum prices - Research Paper ExampleCrude futures declined in the recent past on concerns global oversupply is hurriedlyfilling oil stocks. Total petroleum output in the year 2015 is evaluate to go up to 9.35 million barrels every day, slightly more than the 9.3 million barrels daily forecast in the previous period, the Energy teaching Administration (EIA) said last week in its monthly short-term energy outlook. Independently, oil stocks went up more than anticipated marking the several sequent week of a higher overall than at any other time for the last 80 years and more. The American commercial crude oil stocks rose by appoxialely4.5 million barrels from the previous week, the EIA said Wednesday.Another reason weighing on oil price is the OPEC. The U.S. oil output could be adversely stirred in the years due to low oil prices offered by the OPEC countries. In addition, the lower global oil prices may have affected the marginal barrel output from other sources, such a s shale, OPEC said.The OPEC body controls a significant percentage of the worlds fuel production. As such, any decision they make directly affect the market prices of the commodity. In this case, the petroleum trading block may take actions targeting their competitors. Such actions may include swamp the market with the commodity leading to market forces coming into play and hence price decline.America has been in the frontline in the war against terrorism. As such, the country has develop various policies aimed at reducing terrorism. Such policies have been affected towards Iran and Tehran for their alleged involvement in nuclear weapon manufacturing. In this case, the two countries ar prohibited from placing their products in major global markets. However, USA and the two countries have signed several deals that have seen the reintroduction of petroleum product from two nations. In this case, the add up global supplies increase prompting the market forces to push the prices