Economic Analysis For the International Market Crude Oil.
Dr. Yessir M. Alobaid
The oil market is one of the most essential topics in the study of the oil economy and international oil politics, and there are multiple parties operating in the market between crude oil producing and exporting countries, companies, agents and brokers, and the oil market is not linked to a place Or a specific geographical space, but crude oil deals can be held by multiple means of communication across oceans and seas, as there are many names of the oil market, there is the spot market, which is the market for instant or immediate deals, and there are contracts for crude oil that come within the framework of bilateral and multiple agreements, and there are oil contracts through Floating oil containers close to consumer markets.
The analysis of the oil market begins by studying it in light of the theory of markets in micro-economic analysis, then characterizing the behavior of the oil product and analyzing it in the issue of prices, and then completing the topic by studying oil prices, which constitute the most important element in studying this behavior by referring to the historical aspect in it, leading to determining the path The price of crude oil per barrel according to economic analysis. The study of the oil market is divided between economic models – the oil economy – the oil product in the market, and this intent results from the fact that the oil market is from a group of parties, whether consumption or production countries or companies operating in the oil field or energy, and because oil is a political, economic and strategic commodity, it enjoys With international concern and care within the framework of countries’ policies and regulations, it has been said,; (One drop of oil equals a drop of blood)
▪️ Oil Prices And Economic Analysis:-
The oil price means the monetary value or monetary image of an important barrel of oil in the American standard of a barrel of 42 gallons expressed in the American monetary unit through the periods of development of the oil industry, and despite all attempts, ideas or practical measures to find a monetary unit through the names of the oil dollar and the basket of major currencies and special drawing rights This barrel was destined to be linked to the US dollar in a way that harms the oil countries, and the oil price in other countries has names that can be displayed in two groups, the first of which are concession contracts, equity contracts, total ownership and participation, and another group that has arisen recently due to the pedestrians of new markets such as spot markets, such as crude oil trade deals for the term. Long term and price movements in the oil market, such as the declared price, which is the price of a barrel announced by the companies in the Seven Sisters Cartel, calculated in the American monetary unit, and the achieved price, which is the price of a barrel of oil expressed in the monetary unit, determined by what creates the discounts or facilities offered by the company that sells crude oil to the buyer, and accordingly the price will be Verified is the advertised price minus the discount price I mean reducing a certain percentage of the declared price of a barrel to entice the buyer to buy.
Accordingly, the paths affecting the price of crude oil in the light of economic analysis are first the volume of the reserve, which is one of the most important factors that affect the path of crude oil. The future may result in new reserves and discovered reserves.. We can conclude that the spot market (or Rotterdam market) is considered the most influential in the movement of crude oil trade with its three elements (supply, demand and price) and this market has a clear impact on the movement of the crude oil trade markets, specifically Prices until the spot price has a significant impact on the movement of official prices announced by the oil-producing countries, including the OPEC countries. In this aspect, the Rotterdam market was chosen to represent a market among the oil markets with spot deals. It is a tradition in which the seller and the buyer meet to harmonize between bids and offers. Rather, everything there is a commercial activity that can be dealt with by anyone who rents an office and a transmitter and where he resides in Rotterdam, London, Paris or New York. The international cargo that occurs between the experimental centers and the transported trade and centered in Rotterdam, which includes trade within the European ports (Rotterdam – Amsterdam) and towards the upper river to Germany – France – Switzerland. The market expanded as a result of the increasing demand for oil consumption, especially central heating fuel, due to the availability of products from export refineries, especially Italian and the refineries of major monopolistic companies. About 300 companies work in this market, in which more than two-thirds of these companies are concentrated in the hands of seven companies, and the remaining quarter is owned by about 12 companies knowing that Rotterdam prices are not the result of rational economic decisions made by competitors from a common cost base Therefore, the immediate market is as important politically as it is economically because its prices have an impact on prices throughout the countries of Europe and the reason for this is due to the presence of excess capacity in the immediate market competing with the contractual market.