Why petroleum prices change in word | Why Petroleum is high in Pakistan | Why suddenly change Oil Price

Introduction

One Day Us citizen and oil sector company suddenly shocked due to high up changes prices of oil’s. USA economist indication to government next prices of oil chances will be very hard and fast. Our yearly demand and planning forecast had been disturbed today because highest interest rate and inflation of people so there lower middle more effective. Market Expert define this oil changes that Russia and Saudi Arab produce oil at largest scale but less delivery supplies previous regular basis therefore market had increase approximately 2.8 dollar and indicate this market will 6 percent next 4 years. Difference energy expert and agencies already indicate in this year’s consumption will increase rather previous demand and supplies.

Types of Oils.

1- Petrol

2- Diesel Oil

3- Kerosin Oil

4- High Octane

Main Producer of Petroleum

1- Saudi Arab

2- Russian

3- Canada

4- Iraq

5- UAE

Factor of Oil Changing

Many factor influenced on oil prices in the world but we will explain main important factor specially Europe union and south Asian Country.

· Supply and Demand

· Economic Growth

· Political Stability

· Currency Exchange Rate

· National Disasters and Accident

· Government Policy and Regulation

· Infrastructure and Transfer

· Storage Capacity

· Foreign Policy

· Internal Refinery System

1- Supply and Demand: - Determination of everything use micro comics model it means supply and demand. Every planning and forecasting base on supply chain management and demand chain management local and international market. Financial year budget decided base on S & D.

2- Economic Growth:-Economic growth directly related to import and export, GDP (Gross domestic product), living standard of country people, social factor, and national input and out income etc.

3- Political Stability:-it very important and largest factor of successful country all thing is directly and indirectly connected with political stability. If any country maintain sustain political then grow will shortly otherwise more chances of default like Sri Lanka, Libya etc.

4- Currency Exchange Rate: - Largest number of country oil and other related items provide to country people on highest rate in our current internal currency due to purchase oil in USD Dollar. International currency rate is very low rather than dollar like current rate sri lank 317 rupees equal to 317 rupees.

5- National Disasters and Accident: - it direct related to national economic and badly effect in international market. Different types of disaster occur in the world like Earthquakes, flood and flash, environment etc.

6- Government Policy and Regulation: - Most of country impose different types of taxes on oil like levy, general sales tax, custom duty etc.

7- Infrastructure and Transfer: - one main factor involve in directly related like how oil received through road, rails, air, pipeline tanker etc.

8- Storage Capacity: - if today oil prices is low and store can be for next couple of month then purchase again as per market trend and its save for emergency and national disaster.

9- Foreign Policy: - Policy have keep impact same as some other factor because oil producer provide to different country on different prices instead of market prices.

10 Internal Refinery System: - Largest number of country internal refining system have not available and do refining the oil from other neighbor country.