Oil in the market

The demand for embrocate will be present a perfect example of this would meet to be, the Chinese economy, with a haste in the demand for crude petroleum color in china, their economy has risen tremendously. Since oil is limited. People must look for other alternatives like solar office, hydro power, even alternatives like ethanol where it is used faintly as a source of energy to power vehicles. When it comes to the market speculation there is a lot of investment being poured into the oil trade, due to this surge of investments, fluctuations in the market go from high to low on a daily basis.Risk will be present when it comes to business, but in the case of the investors depending on how the market trends are they may lose profit rather then make profit. When it comes to the supply of oil there are long and short-term factors that relate the international markets. The short-term factors include -Profit motive -Spare capacity -Stock External shocks Profit making factors rely s imply on OPEC operating nations. OPEC is put in place as a cartel to regulate footing fixtures on crude oil and gas that are supplied by worlds oil producers.Ex Saudi Arabia Oil refinerys have stocks in place to be released in the market when the demand for oil fluctuates, in the case of an oil company in peril with low profits, the effects of production shocks may be devastating to the companies growth, examples of these issues. winning a longer-term perspective, the long run world oil supply is linked to 1 . reserves Depletion of turn out oil reserves the faster that demand grows, the quicker the expected rate of depletion 2.Exploration Investment spending on exploring, identifying and then exploiting new oil reserves. When oil prices are rising and are expected to stay slopped for the foreseeable future, it makes financial sense to invest more resources in exploring for new reserves, even though these may not come on stream for some years. 3. Technology Technological change in oil extraction (which affects the costs of extraction and the profitability of extracting and then refining the oil) Long-term effects include Reserves Exploration Technology