#6 Oil pricing last presentation

http://youtu.be/vcaq7nzhSH4

Oil pricing started on early 1861 by standard barrel which is equal to 158.987 litters that is equal to 42 US gallons

It was counted as barrels because it was the way to transport from one location to other during the 18^th century

Let see the oil pricing references and how its calculated??

As usual supply and demand is the most logical way that control the trade.

But how a source of energy that most of the world in increase demanding toward it can reduce by low demand?

Other raising question how the big spikes appearing in the pricing trends what is causing it?? 

Let go back in history and try to find an answer for some of our questions.

‘Going back the history of the peaks that appeared in the late century in 1940’s oil price was $ 17

Raised up to 20$ during the Korean WAR, after that Vietnam WAR from the 50’s until 70’s the price slowly decline  to under 20$

During the Arab oil embargo in 1973 the prices of oil rapidly rouse to double its prices in addition to that during the Iranian revelation the second oil shock the oil pricing reached 103$ again the oil raised during the gulf war in 1990, in 911 also oil roses to 45$ 

From the given event we can see the real impact of the unstable condition throughout the world can change the oil pricing dramatically, therefore not a supply and demand is the only tool that effect the pricing.

The UAE government has realised this and took a certain measure’s to overcome these situation by diversification of income sources.

‘UAE will celebrate the last shipments of oil’ MBZ crown prince of UAE

‘The oil is contribution in UAE union budget by only 30%’ MBR prime minter of UAE

  Part of the two statement was given during the government summit that was held last year in UAE

Why is that?? Because oil is ultimate source and not renewable we are depending mostly on it since the found of the UAE

The world depending on oil in producing energy by more than 40% plus we use oil and its product in most of our daily consuming materials, scientist have identified at least 500,000 different uses of crude oil and expert state that its soon to say that we can easy live without it in the near future.

Big Wall Street player are deeply in the oil market and if we see the index of the S&P 500 we will understand why it’s the longest decline in the history of oil.

From all the given we conclude that oil pricing is an economy driven by  the world biggest companies and economies and it’s a big filed that huge investment is put into this field moreover it not a simple business, I leave it for the viewer to decide by the this final graph.