The price of oil is primarily determined by the demand supply ratio of the market all-round the globe. Oil price analysis is therefore done in order to trace the perceptive graph of the target market with respect to the pricing policies of oil companies. This provides one a firm basis upon which to fix the market price of oil.

Sample Oil Price Analysis:

Oil Price Analysis

Oil price analysis done by: Navigator Oils Private Limited.

Date of the survey: 06.03.2012

Market Summary:

The market of oil has seen a steady rise ever since its foundation. With transport facilities becoming smoother than never before and the affordability of vehicles have ensured a steep rise in the demand of crude oil. However, the gradual depletion of natural resources and rising concern about its conservation and optimum utilization have resulted in a decline in supply thereby resulting in a steep price hike. The price of ration oil too says a similar story, with business organizations rationing the limited supplies to competing customers and thereby boosting their profits.


Price Structure:

The price of oil has seen a steep rise ever since the disruptions faced in the 1970s in the supply of oil. With global crises like Persian Gulf conflict, the prices of oil have gone up like never before, stretching the graph sky high. Petroleum prices that has once started at a dollar per liter have now jumped to 6$ per liter. However, owing to a decline in its supply and its contribution to pollution, diesel and other pollution free fuels are gradually taking its place.

Transactions:

The kind of transaction the market favors also plays a huge role in determining the price of oil. As the company supports immediate transactions and credit sales, its sales remain forever high resulting in price hike.

Seasons:

Rise or fall in demands in accordance with the seasonal changes may also change market prices of oil.


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