DEMAND & SUPPLY OF CRUDE OIL (PETROLEUM)

Janu

ary

Febru

ary

Mar

chApr

ilM

ayJu

ne$0.00

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

Price Per Barrel$92.66

$108.65$97.73 $105.85

$116.32$108.18

DATA FROM INDEX MUNDI COMMODITY PRODUCTS WEBSITE

PRICE TREND (2011)

DEMAND CURVEFACTORS AFFECTING 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.

SUPPLY CURVEFACTORS AFFECTING SUPPLY

Limited available resources – Decline will begin since 2020 according to IMF.

Geopolitical uncertainty – Last 2 yrs almost 24 disruptions.

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.

in supply= in price= in demand – 60million barrels released from reserves.

THANK YOU !