2. PRICE TREND (2011)
$116.32
$120.00 $108.18
$108.65 $105.85
$97.73
$100.00 $92.66
Price Per Barrel
$80.00
$60.00
$40.00
$20.00
$0.00
DATA FROM INDEX MUNDI COMMODITY PRODUCTS WEBSITE
3. FACTORS AFFECTING DEMAND CURVE
DEMAND
Demand more in emerging markets –
IMF expects 4.4% growth & 5.6% by 2020.
rise in demand = rise in price – 2001
$50.60 & 2010 $ 140.45.
Impact of economic growth – In 2001 -
475 million liters 2010 – 2675 million liters.
Oil products & its uses –
Petrol, gases, kerosene, bitumen etc.
High rising oil prices – short
supply, speculation & fall in $ value.
4. FACTORS SUPPLY CURVE
AFFECTING SUPPLY
Stagnant production – OPEC production
2.4 million barrels per day – required
4.4million barrels per day.
Low inventories – 2001, 3.3billion barrels
& 2010, 2.8billion barrels.
Geopolitical uncertainty – Last 2 yrs
almost 24 disruptions.
in supply= in price= in demand –
60million barrels released from reserves.
Limited available resources – Decline will
begin since 2020 according to IMF.
