text: Global Oil Price Market by Jason Marshgreen on Prezi
  Global Oil Price Market
  Jason Marshgreen
  Transcript of Global Oil Price Market
  Background to Oil Price from 2008
  graph to right shows that since 08 global price has risen
  Effect on UK price
  crude oil costs and renewable energy demand
  increasing scarcity of crude oil will increase price dramatically this is starting to make crude oil to go from inelastic to elastic
  as personal incomes are stretched demand are likely to move in favour of better value for money renewable energies, decreasing the use of crude oil as a domestic energy source
  germany is leading the way in Europe presently as Eurozone crisis worsens and price of crude oil increases more nations will need to follow Germany's example
  sourced from: http://www.economicsonline.co.uk/Competitive_markets/The_market_for_oil.html
  while consumers are finding fuel price hard to meet in 13 price has dropped
  the price of oil was $147 per barrel July
  the recession caused oil price to fall by 76% to $34 a barrel
  (income effect), and substitutes began to emerge.
  demand for oil rose. so oil prices rose again. Shifting the demand curve from d1 back to d2
  oil was trading around about $125 a barrel. And increase of 73% from
  Peoples disposal income increased, due to increase spending confidence in the global market derived from low prices in oil, creating more business for companies to then increase wages, and support increasing business performance, increasing price of oil.
  UK price trends: consistently increasing price of petrol over past 22 years,
  slight dips in price occurring since 99 every 3-4 years.
  this shows that petrol pump prices in the UK are due to experience a dip in the "foreseeable future"
  reason for is current 3-4 year time period price soared, and graph shows trend is when this happens a dip follows.
  The effects of the global downturn On oil
  new technology enabling more efficient use of oil, requiring less demand
  substitute raw materials, i.e h20, hybrid technology, Nuclear Power, bio fuel,
  overall demand will decrease. As price continues to rise due to scarcity of oil,
  supply will diminish as substitute goods takeover.
  'The new oil reserves we're now exploiting are not only more expensive to develop, but they also take much longer between the time the first well is drilled and the when the first oil is produced. That means it takes longer for oil supply to respond to changes in price.'
  If this is the case, the main reason for increased oil price is the fact companies that produce it arnt making enough return after costs have been deducted. so prices have to rise to meet the cost overtime, as oil is taking longer to produce/ manufacture, the sales revenue takes longer to come in. 'Money coming in taking longer than money going out'.