Browse over 20 million
homework answers & study documents

Daily changes in price of crude oil, natural gas, and gasoline

Type

Study Guide

Rating

Showing Page:
1/9
Insert Surname here 1
Name:
Instructor:
Task:
Date:
Daily changes in price of crude oil, natural gas, and gasoline
Energy, which comprises of crude oil, natural gas, coal, and gasoline is one among the
most important and demanded for commodity throughout the world. It is a given that energy,
especially in the developed and developing countries, forms one among the major pillars for
economic sustainability. Many of the economic activities in all fields of production including
industrialization, factory operations, medical and educational operations, and even domestic
activities are hugely reliant on energy. Moreover, the entire transport system throughout the
world is very dependent on energy. Most of the locomotives including vehicles and airplanes use
one type or another of energy to run their engines. Thus, it is indisputable that energy is
paramount in the entire global society, and consistency in its production as well as stability in its
prices would play a massive role in ensuring global economic growth.
Although energy, more so, crude oil, gasoline, and natural gas is vital for economic
development of many nations throughout the world, it is inevitable that its prices are on constant
variation. The prices of petroleum products are on constant changes, and are dependent on such
factors as the political stability of the leading oil-producing states in the world, the factors that
affect the process of refining petroleum products, the economic situation of the energy-producing
states and that of states confirmed to have oil deposits, and weather problems among others.
Thus, it is clear that no one state in the world has full control on the prices of petroleum products
across the world. All countries throughout the globe, including the leading economies such as the
United States of America and China, require sufficient supply of energy for the good of its
economy and that of its citizens. With that, they have to collaborate with other important states

Sign up to view the full document!

lock_open Sign Up
Insert Surname here 2
that have some influence in the global energy production to come up with multinational policies
with which to regulate the prices of energy in the global markets.
On the verge to regulate energy prices regionally and eventually globally, the society has
established a number of national and international authorities that work to liberalize the energy
markets. Primarily, these authorities aim at protecting the rights of consumers of petroleum
products from overexploitation by the leading producers of the commodities as well as curbing
the terrible ordeal of oligopoly. Some of the major regulatory authorities in the field of energy
production include the Australian Energy Market Commission; the Energy Market Authority in
Singapore; the Energy Community in Europe; the Nordic Energy Market; and the European
Union. The energy regulatory authorities seek to discourage volatility of prices, facilitate the
needed reforms in the energy sector, and search for evidence of anti-competitive practices in the
energy markets such as the presence of monopoly among others. All these activities aim at a
common goal, which is to try to control the daily changes in prices of crude oil, gasoline, and
natural gases.
Apparently, the variations in the prices of petroleum products are driven by the global
changes in their supply and demand together with several other geopolitical factors. The
Organization of the Petroleum Exporting Countries (OPEC) is the unison body that controls
worldwide oil production. OPEC targets to keep a stable price per barrel for crude oil.
Political stability is paramount for the growth of any economy, as it contributes majorly
in the creation of an appropriate business or rather operational environment in different fields of
production. Like any other sector of operation, the sector of oil production, which involves a
series of operations such as mining of the crude oil, transporting it to the refineries plants for
processing, setting the national and international prices for the petroleum products, and
eventually distributing them to the areas of demand; require high levels of political stability. A

Sign up to view the full document!

lock_open Sign Up

Sign up to view the full document!

lock_open Sign Up

Anonymous
Had to paraphrase some of the content but overall, really useful material.

Anonymous
Heard about Studypool for a while and finally tried it. Glad I did caus this was really helpful.

Anonymous
Just what I needed… fantastic!

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4