The Struggle for Oil

The quantity of a good or service that consumers are willing and able to purchase at a given price in a given period of time has an economical term known as the demand. One of the basic concepts of Economy is that, if the product of a good is produced more often, the price decreases and the demand increases, but the laws of supply and demand don't always apply on the oil prices. Many OPEC Leaders, who's economy is highly dependent on oil resources have struggled to stabilize the prices at a level that fits their economy.


 "The price rise is a function of optimism that better things are coming in the future." 

- Saudi Oil Minister Ali al-Naimi.

 As an unrenewable resource such as oil, is in high demand for many leading countries, and has to be set in a high price so that the profit fits the consumer. An Average price for a consumer would be 60$ dollar a barrel, yet this changes depending on how much storage each country has to offer. The storage is the amount of product or in that case oil, that they have, and since a lot of that is being sold very quickly, because the demand of oil increase as technology does, the prices have to be set on a certain number, that benefits the consumer and the supplier (the economy). If most of the "Oil rich countries" were set in a crises, the prices for a barrel would decrease dramatically and that would have a major effect on the global economy. Countries such as China have build up strategic oil reserves. If every country would continue like China does, than most of the prices can be brought up again and that would increase the supply for demand again. The demand increases as the supply decreases which affects the price settings of oil. For now the danger that the price will shoot up, is not in a very high range, but eventually the prices might go up to 110 $ a barrel in 2015 and by the end of 2015 it might increase up to 130 $ barrel a day.