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The majority of OPEC oil reserves is located in Saudi Arabia, Iran and Iraq contributing 55 percent to the OPEC total.This article clearly relates to Economics because it analyzes how the costs and production of oil can affect other countires, as well as their economy. This article relates to both International Trade and Macroeconomics. It deals with International Trade because it talks about the overall demand for oil in the world and the cost of the barrel that all countries have to accustom to. The article deals with Macroeconomics because it evaluates and analyzes why and how demand for oil increases or decreases in a specific economy or country.
OPEC has reserves that hold over 900 billion barrels. OPEC also added 111 billion barrels of reserves to make a significant contribution for other countries to demand higher for oil. The added reserves is proven to be able to keep constant demand growth for years. The Monthly Report for August of OPEC announced that in 2009, world oil demand will grow by 0.9 million barrels a day. That will average 87.80 million bpd, which is the same forecast as of last month's. Oil demand in the US was invulnerable for quite a while because of its slow economy and the high oil prices. US's oil demand fell by 3.5 percent that causes a loss of 0.7 million bpd. On the other hand, oil demand growth was visible in China, the Middle East and Asia during the summer. This oil demand growth added a value of 1.2 million bpd but it was still not enough to keep the OECD oil demand on track. The OPEC report has recently announced that the oil demand growth in the Middle East reached 0.33 million bpd in the second quarter. This averages to 6.8 million bpd. It is fore ...