Economics of Oil

Economics of Oil

1. My article is about the oil prices falling from the lack of demand then in the United States and China. Heating oil, light, sweet crude oil, gasoline, and natural gas prices all fell, and there are predictions that prices will continue to fall. However, the downfall about predictions is they have the likelihood to not come true, and anything can happen to change this prediction. Recently, the stock market tumbled by the largest amount in years on based on worries about an abrupt economic slow down. The fall was triggered by a 9% drop in Chinese shares. In regards to the energy markets, the stock market declines raise a red flag about oil demand.

2. The article was published Wednesday, February 28, 2007 in the New York Times, written by Madlen Read.

3. This article stood out because consumers (especially myself) pay an oil bill every month and spend too much money on gasoline every week. The aftermath and reasoning behind the stock market's ups and downs also fascinates me, even more so when the reasoning involves foreign relations. I also believe that the public should stay on top of the fluctuations in the stock market because they are in indicator for future economic changes that will affect everyday life.

4. The major key figure in this article are consumers of oil and gas, because the change in prices has an effect on more consumers they any other key figure. Another key figure would be investors in the stock market who are losing money quickly on their investments, and will deter future investment in these resources. Also, the investor's in China's markets.

5. The key issues take place at the New York Stock Exchange and in the pockets of every consumer, as well as in China's markets.

6. The article relates to economics, which is the study of the production, distribution, and consumption of goods and services, because the public consumes these resources on an everyday basis. Another connection is the production as to how we receive these goods involves foreign relations, which play an even more important role on the economy (U.S. economy and worldwide) and future prospects of needed resources especially when resources are originating from country with horrible motives. The article also relates to scarcity, which is when available resources are insufficient to satisfy all wants and needs. There will always be a demand for oil, gas, as well as all natural resources, even more so when we are not capable for producing these resources ourselves.

7. Microeconomics is a branch of economics that studies how individuals, households, and firms make decisions to allocate limited resources, typically in markets where goods or services are being bought and sold. The market wasn't moved much by a U.S. government report that said stockpiles of gasoline and distilates, which include heating oil and diseal