Oil s Impact On The Economic Spectrum - 3994 Words

Introduction Crude oil is the largest individual source of the world’s energy needs, it’s used in the production of many other products such as plastics, synthetics, fuels, bitumen etc. and is used as a benchmark for the pricing of other energy sources such as LNG. Oil’s impact on the economic spectrum i.e. from the hip pocket of the â€Å"man or woman on the street† to national finances cannot be understated. Oil prices are determined through the interaction of physical and financial markets, therefore making it’s pricing exceedingly complex. In Part A of this report, we endeavour to predict whether the Brent crude oil price will be above or below the current â€Å"spot† price of around US$60 per barrel in one and five years time and we consider demand concerns in China, supply issues within the US and OPEC (Saudi Arabia especially) as well as global geopolitical impacts. In Part B, fuel is the largest operating expense for an airline and we will assess the vulnerability of the share prices for Qantas and Virgin Australia to movements in the oil price. Part A 1. Chinese Demand According to the U.S. Energy Information Administration (2014), China is the world s second largest oil consumer behind the U.S. and with a fast-growing economy that accounted for one-third of the world’s oil consumption growth in 2013 (and expected for 2014), its demand profile is a key determinant of Brent crude oil price. Factors include: †¢ It is expected that China will target a Gross Domestic ProductShow MoreRelatedRisk Assessment And Action Plan1646 Words   |  7 Pagesinclude unforeseen events that arise outside of the normal operating environment. An example of a hazard occurrence that spurred further regulation was the Deepwater Horizon disaster in 2010 which led to multiple deaths and contributed to the largest oil spill in U.S. History. The design and operation of Deepwater Horizon did not adequately control the release of hydrocarbons (high-pressure gas) from the Macondo well which caused a massive explosion. As a result, The U.S. department of the InteriorRead MoreEconomic Analysis ( Ks ) Essay1230 Words   |  5 PagesEconomic Analysis (KS) The Federal Reserve reports in the Beige Book that was most recently published on April 15, 2015, that throughout the twelve Federal Reserve Districts, which include, Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansa City, Dallas, and San Francisco, economic expansion continued to grow within most regions. Consumer spending is on an upswing in Boston Philadelphia, St. Louis, Minneapolis, and San Francisco, who allRead MoreChapter One Of Esty And Winston’S Research Novel, â€Å"Green1081 Words   |  5 Pagesare now held to higher standards: they can no longer just produce. Government and consumers alike are demanding more from companies, particularly on an environmental spectrum. Esty and Winston first detail the newly formed â€Å"Green Wave† initiative. The Green Wave, referring to companies’ increased attentions to their environmental impacts, was brought about by mainly two â€Å"interlocking sources of pressure†: 1) the depletion of natural world which could eventually cause a loss of business and resourcesRead MoreThe Nuclear Family is no Longer the American Ideal Essay954 Words   |  4 PagesTimes have changed; the nuclear family is no longer the American ideal because family needs have changed since the 1950s. This American convention of a mother and father and their two children, were a template of films and early television as a depiction of the American family life. Now seen as archaic and clichà © by today’s standards, but the idea is common throughout many of the first world nations in the world. This ideal was a vast departure from the past agrarian and pre industrial familiesRead MoreFree Trade And Its Effects On The Prosperity Of Countries1744 Words   |  7 Pagescenturies. Free trade is defined as a system in which goods, capital, and labor flow freely between nations without any trade barriers (What Is Free Trade?). Many nations therefore engage in this policy in order to ensure their citizens have enough economic resources or consumer goods for meeting various wants or needs. At the global level, free trade became a major U.S. foreign policy priority for the post-World War II international system and played a central role in establishing the Bretton WoodsRead MoreTypes Of Integrated Pest Management Programs Against Cotton1198 Words   |  5 Pagesinfestation with both species and the economic yields are almost impossible to achieve without their chemical control. In Egypt, Khidr et al. (1996) tested the efficacy of the pyrethroids, cypermethrin, cis-cyfluthrin, S-fenvalerate, fenpropathrin and cyhalothrin against P. gossypiella and E. insulana. They stated that, all insecticides gave a high degree of control against cotton bollworms and the treatment increased the yield of cotton significantly over the control, with s-fenvalerate being the best treatmentRead Moreâ€Å"Human Resource (Employees) Is the Most Important Asset of an Organization.1034 Words   |  5 Pagesis one of the main resources that the country depends on to attract foreign investors. In 1965, Singapore was officially separated from Malaysia. This called for internationalization for almost all of its economic activities, boosting Singapore’s economic growth. In the late 1970’s, after the oil crisis reduced recession, the Singapore see a need for greater selectivity in the industries it promoted to achieve more efficient labour usage. Educational in schools and training programs was introducedRead MoreTrade Patterns Of Usa And China1341 Words   |  6 Pagessecond-largest trading partner, third-largest export market and the biggest source of imports for the United States. The U.S. government’s debt purchased by China provides US the benefits of low interest rates (Morrison, 2015). While for few this economic relationship is considered to have a positive effect as it helps to fund the U.S. economy, for others it is an attributable concern that China may gain more power over the U.S (Loc.gov, 2016). Some major trade policies have negatively impacted theRead MoreInternational Humanitarian Intervention : The United Nations1287 Words   |  6 Pagescollapse than are stated in Africa because where state failure appears to be endemic19. For example look at Indonesia, the conflict in East Timor after Suharto s downfall was the most dramatic exception to this rule. Indonesian strategic analyst argued, Is Indonesia a failed state? Even after almost five years of multiple crises — economic, political, social, and cultural — one could not say that of Indonesia today. Indonesia has become a weak state, but not a failed one. Latin American and AsianRead MoreMedia s Influence On Society s Emotions And Opinions1517 Words   |  7 Pagesheavily on the information provided by media. While being exposed to a lot of information may be positive, it can also cause an overload of negative repercussion on people and society. Many experts agree that media is dominated by images that negatively impact the way society take actions in their day to day life. The media has also generated a set of tools that can be used dramatically to improve organizational performance. It has contributed to political leaders worldwide by identifying, and reflecting