Professional Assignment 1 -(CLOs covered : CLO 1, CLO 2)

1

Running head: GLOBAL OIL PRICES

2

GLOBAL OIL PRICES

Global Oil Prices Comment by Writing Center: Check the order and information needed Full paper title Student name Course name & code Assignment due date Faculty name Westcliff University

Akhil Gadiparthi

Simin Hojat

BUS 505 Managerial Economics

5-19-2019 Comment by Writing Center: Like so: May 19, 2019

Global Oil Prices Comment by Writing Center: Add this like I did for you here before you begin writing your paper

Oil is a commodity that is consumed on a large scalelarge-scale basis all over the world, although not every other country produces its own oil. Most countries across the globe export the oil that they consume locally. The prices of this particular commodity have been deteriorating ha inthroughout the past twelve months by at least by 60% of the previous prices of his commodityprice in the global market place. Evaluating the supply and demand of oil across the globe is therefore very necessary in determining the price action of oil as well as the impact of price elasticity on demand and supply both in the short run and in the long run. Comment by Writing Center: Great place to cite – where did you find this fact? (Author’s Last Name, year) Comment by Writing Center: Where did you find this fact? Cite (Author’s Last Name, year)

However, theThe prices of oil are expected to take another direction especially due to the difference between the amount of supplyied and the amount of demanded. As of 2018, oil was estimated to be in demand of not less than 90 million barrels per day. The and demand is expected to increase to by about 100 million barrels by 2019 (Jahar, 2019). The amount of oil which was produced per day in 2018 was average according to _____. The amount of barrels of oil produced in 2019 by all oil manufactures in was estimated to be 80.622 million barrels per day. This means that the amount demanded is less than the amount supplied; hence, this will be a key factor that will pull the prices of oil up. Comment by Writing Center: Instead, specify – are they going up or down? Comment by Writing Center: Cite here too (Author’s Last Name, year) Comment by Writing Center: Great! Comment by Writing Center: Cite

The argument here is because,Essentially, when demand is higher than the supply, it this renders a market in deficiency; thus, meaning people scramble for what is offered to them in the market. This scramble calls gets the attention of suppliers attention and as since they are assured of their marketability. Due to this,, they suppliers can alter prices to reap more from the increased demand for their commodities. Comment by Writing Center: Can you say this in another way? This is a bit confusing for me.

The price of oil in March 2018 was about $62.73 per barrel (Lund, 2018). A higher figure was recorded in April 2019 which was $66.14 per barrel. The demand for oil in 2018 was, about on average, 90 million barrels per day,s while the supply for the same was about 92 million barrels of oil per day (Hvidt, 2018). In 2019, after agreements to reduce the number of barrels produced per day by oil manufacturmanufacturers, ed has trained global tanks a little bit since the number of barrels of oil produced today is about 80.622 million barrels per day. This has, therefore, accounted for price elasticity of supply as well as price elasticity of demand. Comment by Writing Center: cite Comment by Writing Center: cite Comment by Writing Center: Explain what we are going to see in this table before you incorporate it. As can be seen by Table 1, ________ (what?)

	Price ($) Comment by Writing Center: For APA, we have to cite a table so before you incorporate the table, write: Table 1. Title of table <insert table>	Supply (barrels)	Demand (barrels)
2018	62.73	92,000,000	90,000,000
2019	66.14	80,622.000	100,600,000

From the tableAs seen in Table 1, above the price of oil has increased by 5.4% from March 2018 to April 2019, while demand has increased by 11.7% while and supply has decreased by 12.4%.

Price elasticity of supply is equal to= 5.4/12.4, which is 0.44. w Thehile price elasticity of demand is 5.4/11.7, which is 0.46. this, Ttherefore, means that both the price elasticity of supply and demand are inelastic in the short run because it is the prices have been varied, but both will achieve elasticity in the long run after varying other factor inputs in the production of oil. Comment by Writing Center: Add a conclusion to this essay. If you need help with that, see: https://edpuzzle.com/media/5b0c259849a4e1408524121d

REFERENCES: Comment by Writing Center: Not in all caps = References

Lund, H., Sorknæs, P., Mathiesen, B. V., & Hansen, K. (2018). Beyond sensitivity analysis: A methodology to handle fuel and electricity prices when designing energy scenarios. Energy Research & Social Science, 39, 108-116. Comment by Writing Center: Retrieved from URL

Hvidt, M. (2018). The price of oil. The disruption caused by the American shale oil industry. Videncenter Om Det Moderne Mellem¯ sten. Comment by Writing Center: I am not too sure what kind of reference this is. Check with Purdue Owl Writing Lab. Or send me an email

Jahar, N. A., Pua, F. L., Chyi, W. J., Mostapha, M., Zakaria, S., Chia, C. H., & Jaafar, S. N. S. (2019). Utilization of Core Oil Palm Trunk Waste to Methyl Levulinate: Physical and Chemical Characterizations. Waste and Biomass Valorization, 10(3), 655-660. Comment by Writing Center: Not in all caps – Capitalize only: First word and first word after the colon Comment by Writing Center: Retrieved from URL