Rich or poor, rising fuel prices led to a terrible world economy in the world harm. It happened in 2008, when a dramatic increase in fuel prices and ended with a record $ 150 a barrel. Still observe a gradual increase in gasoline prices worldwide. Basically, supply and demand for crude oil is the main cause of the high cost of fuel. Supply and demand is the main criterion for all energy prices.
World Oil Supply
According to the Department of Energy of the USA, there are three separate power estimates of the known oil reserves in the world. The reserves are estimated at an average of 1,255 million barrels. Saudi Arabia as the main producer handling 256billion barrels of reserves. 755 billion barrels, including the Middle East.
Association of Petroleum Exporting Countries (OPEC) is an association of 12 countries, led by Saudi Arabia. OPEC accounts for two-thirds (66.66%) of the oil reserves in the world. OPEC as a market leader not hesitate to set their own prices for crude oil. So there is enough competition to lower prices.
Oil demand in the world
Fuel prices and fuel are asking is directly proportional to each other. This means that every time the growing demand for petroleum products, the increase in fuel prices for consumers. It is estimated that global oil demand 85-90000000 daily rotation around barrels.
Economic effects and political geography (geopolitical)
There are so many reasons to be able to divert attention from the fuel supply, increasing demand and therefore prices soared. Military operations or other disputes between different countries is a major obstacle to the resumption of fuel supplies. For example, Israel’s military activities in the Middle East, as the flares in Nigeria etc
The impact on the price of fuel can not be denied. How can we take the example of Hurricane Katrina in the United States 2,005 40cents develop overnight hike in fuel prices. Some pier oil refineries and severely damaged the Gulf Coast and the results of Hurricane Katrina closed for several months.
As a financial asset
The energy market has become a negotiating platform that is quick in recent years. Therefore, more and larger banks are their biggest trading desks commodity. Most investors have moved into the market for the trade pact in the future price of oil. Although the bank was formed.
Moreover, in many countries, gasoline prices are quoted in U.S. dollar terms, which is an exporter claimed a higher to replace the devaluation price because the dollar is weak against other international currencies.
Is offered by a number of factors that affect the price of gasoline directly or indirectly in the world. The increase or decrease in fuel prices affect the global economy as a whole. Since most of the industrial project is highly dependent on the availability of fuel.