Effect Of Current Oil Price To Global Oil Market

Current price of oil has risen nearly 70% this year, mainly for three reasons: there are few new discoveries of oil in recent years, there is a greater demand for oil especially from China, which is now the world's largest importer after the United States, and there is uncertainty about oil supplies due to war and terrorism, as the report on the arrest of more than 170 people in the conspiracy of the Saudi Arabian oilfields dispute over Iran's nuclear program suspected attackand domestic disputes and militant attacks on Nigeria and Iraq.

Oil prices are just the beginning. Current oil and gas prices are only developed to the top. An energy crisis begins to arise, and the United States and every country in the world is experiencing a difficult change. The impact of higher oil prices on the economy and investors is more complex than it first seems. Therefore, with full global and historical perspective on the price of oilimportant.

In view of the global oil database can provide some analysis to investors. First, the rise in oil prices will have an impact on some sectors like the airline and auto industries. Second, high oil prices would certainly impact on inflation. Has recently contributed the current oil price is already at the moderate rise in U.S. prices. For the Asian countries that experience higher oil demand in recent years, high oil prices would certainly bemore desirable. China has already become a net oil importer. Net imports of oil would be 100 million tons more than this year, according to estimates. High oil prices would certainly eat into its trade surplus and thus trim economic growth. And finally, since the demand for oil and human populations increase, the global supply of oil fortsetzen.Wiejedochbereitsmehr fall. To promote higher oil prices track more oil production, increase in demand for oil substitutes like ethanol and bio-fuels and oil Conservation.