Global market of oil

Presented by:Mashkhal kawa

Barham jalalMahmood ghazi

Supervised by:Dr.Pshtewa

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Contents:

Definition of oil. Types of oil. What is oil made of? What is oil used for? What is OPEC? The integrated world oil market. Factors of oil market. Oil prices. What causes low Oil prices? What happen if oil prices go up or down?

Definition of oil:Is a viscous liquid derived from petroleum , especially for use as a fuel or lubricant.

Types of oil:

Type 1: Very Light Oils (Jet Fuels, Gasoline)

Type 2: Light Oils (Diesel, No. 2 Fuel Oil, Light Crudes)

Type 3: Medium Oils (Most Crude Oils)

Type 4: Heavy Oils (Heavy Crude Oils, No. 6 Fuel Oil, Bunker C)

What is Oil made of?

Crude oil was made over

millions of years from tiny plants and animals, called plankton. It is held in tiny spaces in underground rock, like water in a sponge, Some rocks have tiny spaces called pores. The rocks with these pores can hold the oil like a sponge.

What is oil used for?

We use oil for a long list of applications, including:

Transportation Fuels (Gasoline, Diesel, Jet Fuel) Asphalt Military and defense Fertilizer Heating Feedstock Petrochemicals Plastics Polyurethanes Solvents Electrical generation

OPEC  is the Organization of the Petroleum Exporting Countries. Its mission is to secure a return to oil investors and an economic supply of oil to consumers.

What is OPEC ?

OPEC formed when the international oil market was largely separate from that of centrally planned economies and was dominated by multinational companies

The Integrated World Oil Market

The Nature of an Integrated Market :

oil is misguided, because analysts

often have misunderstood the

nature of the oil market. It is fruitful to

think of the oil market as a single integrated world

market

Factors of Oil market:

How long does it take to discover oil and bring it to market?

The time required depends on where the oil is and thus how difficult it is to discover, test and develop.

There is no standard answer to this question, but as a rule of thumb it can take 3-10 years from the decision to explore, through to discovery, testing, development and

the delivery of oil from a new field.

What happen if oil prices go up or down?

If oil prices are too high, then these goods and services become more expensive and economies experience inflation.

Alternative forms of energy would also become more cost-competitive, but oil producers would eventually increase their supplies and prices would come back down.

what causes low Oil prices?

Low prices of crude oil can be caused by a number of

factors. Basically, it could be due to

an imbalance between supply

and demand - too much supply or too

little demand. .

If oil production rises faster than demand, then prices can fall

and all oil producers will

suffer. In the long run, consumers will also suffer if the oil industry is unprofitable and unattractive to

investors.

If oil prices are too low, consumers would waste this non-renewable resource, investors would not be attracted to the industry and oil producers would suffer - especially the developing countries that produce oil, such as the OPEC Member Countries. If prices were too low, supplies would eventually fall until there was a price shock - leading back to inflation.

References: DIFFERENT TYES OF OIL ZAWYA Factors Affecting Crude Oil Reserve Growth The Economics of an Integrated World Oil

Market www.geohelp.net/wold.html www.opec.org www.economist.com www.answers.com www.eccons.us