• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Unidentified author, 15th January 2003. "Oil price rise despite OPEC increase", Daily News (Tanzania)

Extracts from this document...

Introduction

Unidentified author, 15th January 2003. "Oil price rise despite OPEC increase", Daily News (Tanzania) The article appeared in the "Daily News" on Wednesday 15th January, 2003. It describes how prices of oil have risen despite an agreement by Cartel OPEC to boost output. The main cause of this increase is due to a "cut in production in Venezuela and the possibility of a war with Iraq". Like any other commodity the prices of oil is controlled by supply and demand. ...read more.

Middle

It is essential to the welfare of the industrialized world and it impacts the cost of transport, the cost of goods, services and the availability of many products including food, water and shelter. The price of oil has increased due to the supply of oil decreasing in the International market while the demand for it is increasing. A vast majority of the population will be affected by the increase of the price as there is a high demand for oil and there is no competing substitute to replace it. ...read more.

Conclusion

Despite this pessimism of oil price increasing, theoretically the developing countries that produce oil will benefit from the price rise. This is due to the fact that their economy will improve as more money will come in to the country and foreign earnings will increase. All in all the OPEC countries should increase the supply of oil in order to make the price stable, so that demand and supply are equal bringing an equilibrium price to the goods so that consumers will not suffer and the global economy will not be threatened by the price rise. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Marketing & Research section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Marketing & Research essays

  1. The world oil market is a Homogenous Co-operative Oligopoly. A broad definition of an ...

    is at a 'Posted Price', a different method of pricing of the indigenous product (Transactions). Futures prices of crude are $ 69.59 per barrel for May 2006 delivery and $ 70.22 per barrel, for June delivery. These are the closing prices of May 8th trading on the NYMEX for Brent crude (Trading Quotes).

  2. Applied Business Studies

    major productions each year, and they want to purchase the best props and lights etc. I will now start talking about the disadvantages of setting up a sole trading business. One of the main disadvantages of being a sole trader is, as the owner of the business, you are solely

  1. Impact on Automobile Industry Due To Recession in India

    While economic recessions are foreseeable, they generally are not detected until already in motion. It is actually more common than you might realize for countries around the world to experience mild economic recessions. Recession (or contraction) is a natural result of the economic cycle and will adjust for changes in

  2. Business OPEC

    So basically, according to Taylor, people are only motivated if they are paid a higher wage. The problems with his theory are self-apparent. Firstly, not all employees can adapt to the method that he might try training them in and secondly, earning high salaries is not the only motivator.

  1. SunCity - developing marketing strategy for problem

    because the public is influenced by the media more than any other source, this causes a big problem for Sun City. There are many misconceptions regarding sunbeds and people are being deterred by the 'health risks' yes it may be true sunbeds play a role in skin cancer but it has yet to be proven.

  2. Rise and Fall In Oil Prices

    Most products will have a supply that is elastic as companies want to increase profit, however it is not always economically possible to continue to increase supply as prices rise. Price Fluctuations in Oil prices The major reason why oil prices have fluctuated the way they have in the last

  1. I am interested in how the economy of a country works - the price ...

    What causes demand to shift? There are several things that could cause a demand curve to shift. These are: 1. Changes in income taxes- by reducing the amount of tax on incomes, people will have more money to buy commodities and producers could produce more because the low tax means a lower cost of production.

  2. This is a report on the international dimension of Costa Coffee and Coffee Aroma.

    By offering the customers the same choice as Costa provide in their coffee shops, Costa can add value to their coffee menu and generate additional sales. A variety of snacks are available to choose from and our impulse display unit will help to tempt your customers.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work