THE CURRENT ENERGY MARKET AND LINKS BETWEEN ENERGY PRICE AND BUSINESS PROSPERITY
INTRODUCTION
The aim of this essay is to observe the present state of the energy market and how energy prices affect the success of businesses. The demand for energy is growing as never before and is driving economic growth. Also as standard of living improves, increased amount of energy is used.
THE ENERGY MARKET AND PRICE
The forms of energy used are oil, gas and coal. Oil is one of the main sources of energy since most of the things we use today are made from oil. Companies who manufacture plastics uses oil in making them, also paint industries uses oil to make paints. Mostly we depend highly on transport to take where ever we want to, and the petrol/fuel from those vehicles is made from oil.
US light crude dropped two cents to $60 a barrel in Far Eastern trade, after having risen 88 cents on Monday. London Brent crude, which rose 60 cents on Monday (6th Nov 06), fell nine cents to $59.66. The unrest in Nigeria happened when armed protesters shut down one of the country's oil facilities. Nigeria's oil network has been hit by violence since the start of the year from anti-government militants. Global oil prices have fallen 20% since hitting record highs in July against the backdrop of the conflict in Lebanon. OPEC (Organisations of the Petroleum Exporting Countries) producers cut output to try and raise price.
Source: BBC news online (6/11/06)
The price for OPEC crude oil has increased by $1.23 on 9th of Nov 2006. The quote below is from OPEC:
“The basket price of eleven crudes stood at 56.41 dollars a barrel on Thursday 9/11/06, compared with 55.18 dollars the previous day, according to OPEC Secretariat calculations”.
Source: OPEC w ...