Port Report Essay Example | Topics and Well Written Essays - 1000 words

Port Report - Essay ExampleThis resulted in the reduction of retail gasconade price from USD 3.31 to USD 2.27 during the year 2014. While this has the positive effect on the consumer purchase pattern, the impact of such fall on the investing pattern, particularly the GCC stocks needs flesh out investigation. As it is just the first quarter of 2015, the analysis of current oil prices fall cannot be done correctly since its effect on stock investment needs longer period of observation. Hence, this paper has taken an in-depth look at the relationship between oil pricing and stock investment, as well as general economic conditions, within GCC and across the world, during the recent past. Accordingly, 2008 financial crisis, coupled with cyclic fall in oil prices finds greater attention in the by-line paragraphs.As supply and demand equation determines the price of any commodity, political forces prevailing in the oil producing countries determine the supply position for oil, largely. Technological novelty also plays a major role here. Many political decisions by countries across the globe influence the oil pricing. For example, the cause of recent Russian bills debacle has relation to the falling oil prices. Although under normal conditions, falling prices would result in reducing the production, OPEC countries are not doing it, as they want to remain their control over oil production. This is also seen as an attempt to make oil production unsustainable by American producers, who are utilizing advanced technology to profit shale oil production in a major way.(Stefanova, 2014)Consumers in Western countries take falling oil prices as an instrument to result in lesser tax burden. This way the falling oil prices prove to be positive for the global economy, as these countries can look for heavy reduction in rase inflation rates. While many advanced economies may go for deflation measures, the falling oil crisis has hit the currencies of Norway and Canada in a ma jor way.(Buttonwood,