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

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Running head: DROP IN OIL PRICES

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DROP IN OIL PRICES IN INTERNATIONAL MARKET

Drop in Oil Prices in the International Market Comment by Writing Center: Title Page Westcliff actually just changed their requirements for a title page. This is not the format they want all students to use for all papers (note: in this order) Full paper title Student name Course name & code Assignment due date Faculty name Westcliff University

AKHIL GADIPARTHI Comment by Writing Center: Not in all caps

WESTCLIFF UUNIVERISTY

Drop in Oil Prices in the International Market

For the past twelve months, the oil price has ___, and this has had an impact on the world’s oil suppliers. The fall in prices in the market place is either related to either diminishing demand of a commodity in the market place or increased supply of the same commodity in the market place. Theis fall of prices of oil can be related to many factors. There are a variety of and economic arguments that attempt to explains the relationship between prices and the consumption of commodities in the market place. Comment by Writing Center: Complete – has what? Comment by Writing Center: Is this your introduction paragraph? Please create a strong thesis statement at the end so we know the direction of your paper. If you are unclear regarding what I am referring to, please see: https://edpuzzle.com/media/5abe932cff173e40f02ef96d Comment by Writing Center: Cite this – where would these arguments be found? (Author’s Last Name, year)

The mMillions of barrels of shale oil that are being produced by the unite states isn one of the key factors that have been associated with the falling prices of oils in the market place. Take for Iinstance in December 2018, shale was expected to be producing an average of eight million barrels of shale oiled per day (Bjørnland, 2018). This was amount is between 9% and to 10% of the total oil produced worldwide. This was a great contribution of oil in the market place, and thus, lead to tanks flooded with oils. Theis excess supply of oil in the market place implied meant that each oil manufacturer had to charge lower prices for their oil in the international market to sell and compete favourably with other cartels. In their effort to increase sales by charging less, it has beenbecame evident that this has had thea resultant effect of price decreases in of oils. To curb this ____, the United States even tried to create aa deal with OPEC and non-OPEC oil producers. They attempted to curb their production rate by 1.2 million barrels per day by January 2019 in an effort to drain tanks worldwide (Sioshansi, 2019). This was an attempted to increase demand for oil in the short run, which could have enabled price stabilization of the commodity. This was however on board when shale oil producers reported an increase of barrels of oils they produced per day. This, thereforeTherefore, means that shale oil could have accounted been responsible for thea substitution effect of thewhere there was reduced oil production by OPEC and non-OPEC oil producers. Comment by Writing Center: 2 things: 1 – check spelling – united 2 – Always capitalize country names = United States Comment by Writing Center: Great place to cite. Where did you find this fact? (Author’s Last Name, year) Comment by Writing Center: Check this – shale was not expected to produce, instead: ______ (which country?) was expected to be producing Comment by Writing Center: Great! Comment by Writing Center: Always with APA, before you use an acronym on its own…you will need to write its full form. For example; The chief executive officer (CEO) was… Then after that point, you can use the acronym on its own. First introduce it with parenthesis Comment by Writing Center: The phrasing here is unclear to me. I am not too sure what you are attempting to say.

Another factor that has been associated with falling oil prices the was the fact that the United States granted waivers that has the United States gave to eight countries, in November 2018 (Mathews, 2018). This meant that oil was made more readily available in the market place as is countries could now obtain oil for their locally so easily. Due to his the ease of il access guaranteed by the temporary grant waivers, the supply of oil was increased in these particular countries. This meant that due to the a sufficient supply of oil, cartels had to compete for in the market by charging less for to compete within the sufficiently supplied market place. Theis reduction in prices is what has been accostingwas accounting for thea fall in prices. Comment by Writing Center: But waivers for what? Can you specify?

Another factor that has been associated with the diminishing oil price for within the past twelve months is the diminishing economic activities worldwide (Zhang, 2018). This has enabled people to save more ____, thus withdrawing currency from circulation. Increased sSavings means less economic participation, as there is a n thus withdrawal from of the circular flow from the global circular flow of income. Theis economic factors can be associated with the dollar gain that has been making other countries curries weaker in thewhen purchasinge of oil. Their purchasing power is thus decreased and the demand for oil would continue to falls. This decreased demand means that what is locally supplied is not consumed, on times thus implying that cartels have to reduce their prices for the consumption of their commodities in countries with weaker currencies. Comment by Writing Center: Need an object – save more what? Comment by Writing Center: currencies Comment by Writing Center: Specify who ‘their’ refers to here Comment by Writing Center: Conclusion paragraph? If you need help = https://edpuzzle.com/media/5b0c259849a4e1408524121d Comment by Writing Center: When I look at your prompt, I see this portion – Discuss the impact of price elasticity of supply and demand in short and long terms. Have you done this? Make sure you to use this terminology = price elasticity and refer to both short and long term

REFERENCES:References Comment by Writing Center: Check the requirements, I believe you need to have 7 references.

Bjørnland, H. C., & Zhulanova, J. (2018). The Shale Oil Boom and the US Economy: Spillovers and Time-Varying Effects. Comment by Writing Center: Is this a website? Follow - https://edpuzzle.com/media/5b6ad2274cb7de4099fe4d58

Sioshansi, F., & Webb, J. (2019). Transitioning from conventional to electric vehicles: The effect of cost and environmental drivers on peak oil demand. Economic Analysis and Policy, 61, 7-15. Comment by Writing Center: Retrieved from URL

Mathews, J., & Selden, M. (2018). China: The emergence of the Petroyuan and the challenge to US dollar hegemony. The Asia Pacific Journal: Japan Focus, 16, 22. Comment by Writing Center: Retrieved from URL

Zhang, W. (2018). The Oil Price and Aggregate Economic Activity: Evidence from Canada. Comment by Writing Center: Website? See tutorial included above and format. Book? = See this - https://edpuzzle.com/media/5a7e135d651dba4193415a76