Forecasting Oil Price and Demand

vegetable oil drive (current and projected)1: The current oil demand is 82.8 zillion bpd. The world creation is expected to grow from 6.6 billion today to 6.9 billion in 2011. On an average, the world consumes 4.58 barrels per capita, each year. ground on this trend, due to the parallel growth of gross domestic product in the same period, the projected oil demand for 2011 is 31.57 billion barrels. On a single day, say 1 Nov 2006, the demand would be 86.5 million bpd (barrels per day). twelvemonthWorld Population (Millions)Billion barrels Consumed Per YearWorld (bcy) barrels/capita per yearPrice/barrel 1986489022.544.60$ 32 1989515024.044.67$ 32 1992540024.434.52$ 29 1995561025.514.54$ 25 1998587026.624.51$ 18 2001613027.744.53$ 31 2004640029.754.67$ 55 2006660030.234.58 (average)$ 59 20116900 (Projected)31.57 (Projected)4.58 (average)? Oil allow for/Production: The current capacity (oil production) levels will be adequate to meet the required supply/demand for oil in 2011 and in the near long-term. Hence, for the purpose of estimating the oil footing in 2011, we can assume that the supply curve will bear on perpetual and will not shift.

Oil - Elasticity of Demand2: Based on various research studies, it has been determined that the oil childs play of demand is approximately - 0.3. For our estimation for the oil price on 1 Nov 2011, we will assume that this remains constant and it is the undivided demand curve that shifts outwards to the right, with the same slope (due to the change magnitude demand as a result of world population growth and a proportional increase in GDP). Oil ¡V Elasticity of Supply2: Similar to snap fastener of demand, the oil elasticity of supply is 0.3 (based on research studies). For our estimation for the oil price on 1 Nov 2011, we will assume that this remains constant and the supply curve doesn¡¦t shift on either direction. Estimation of Oil price for 01 Nov 2011: For simplicity and easier calculation, we assume that both the... If you want to get a full essay, order it on our website: Orderessay

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