OIL PRICE, CHARTS & ONLINE REAL TIME TRADE

Oil price charts keeps rising and will do it again

The increase in the price of the various types of gasoline, rising transport and the risk of falling stock markets are some of the effects of higher oil prices. Just four years ago, in 2003, the third Gulf War, caused by the invasion of Iraq by the United States made up the oil from 35 to 50 dollars per barrel. Today, this important raw material has passed the $ 80 barrier and shows no signs of falling. Its impact on the economy and consumption are negative: rising inflation, particularly gasoline, and many companies are seeing their profit margins fall. Some financial institutions provide for a long upward march of oil could impact on global economic growth. However, so far, the impact of having a very high oil price is lower than that produced in the past because now the competition is much greater, there are more countries that export oil and alternative sources of fuel.

Immediate Impact of oil crude price and taxes of domestic and productive economies

The rise in oil prices is bad news in general for all citizens. Jose Antonio Lopez-Esteras Camacho, General Manager at Ciampi Group in Madrid, says one of its major negative impact on the CPI is noticed, which is rising due to escalating oil prices. In Europe, inflation has gone up four tenths in the last twelve months, primarily by the strong upward trajectory of oil, he assures. In Spain, for example, there has been clearly more expensive because it has gone to record a CPI at a comfortable level and satisfying, as was the 2.2% (which was located in August) up to 2 , 7% in September. Secretary of State for Economics, has even acknowledged that at the end of the year could end at 3%. But how does this increase on the domestic economy?

The first impact of higher oil prices can be seen when paying for petrol. The first effect is seen when pay petrol. Since the beginning of the year, the price of 95 octane unleaded gasoline prices increased 7.5%, while diesel has risen by 8.4%. In particular, according to the latest Bulletin of the European Union in October liter of petrol was purchased at an average of 1.066 euros per liter, 1.05% more than in September. The liter of diesel was changed to 1.004 euros, or 3.2% over the previous month. From the Association of Oil Product Operators (AOPT) claim that the rise of black gold "affects all sectors, whether in its manufacturing process and in the distribution, which increases the cost price of the product when it arrives the consumer's hands. While oil companies benefit from rising oil prices as their incomes rise significantly, many companies see their profit margins fall when oil rises. It is the case of airlines, which use petroleum as fuel, utilities or distribution. Citizens are affected by rising oil prices in relation to these businesses, since companies tend to raise prices to offset the escalation of raw material. The airlines, for example, if the oil begins to rise above the expectations that have marked in their annual budgets, apply a fuel surcharge on trips, which can range from 12 to 30 euros. Similarly, road transport firms also tend to raise prices in stages of upward price of oil. In addition, the uncertainty generated by expensive oil on the stock markets means that companies in the above sectors are more vulnerable to falls in stock.

What sets the price of gasoline and diesel fuels?

In Spain, the benchmark used by oil companies to fix prices is the international price of refined petroleum products. To be precise, the companies that sell gasoline and diesel  as a benchmark the prices of petroleum products that are set in the ports of Rotterdam and Genoa, and published daily in the specialized webs (global provider information on energy products: www.fundraiser.es). In particular, reference is taken as fixing prices in the marketplace Intercontinental Exchange in London, which reflects the price of a barrel of Brent and its derivatives. In this case, prices have reached in recent weeks $ 86 per barrel. However, one must distinguish this type of oil (the reference in Europe), West Texas Intermediate mode, which is most used in the U.S.. Your contribution is different. In fact, in recent days this type of oil has exceeded $ 90. Gold, silver and oil are commonly traded commodities. Worldwide based firms offering trading opportunities platforms in global commodity and stock index markets. Commodity Warrants Europe and Asia. The Commodity Warrants Gold Commodity ... the spot market and trading futures market is the timeframe of the transaction for real time and online search for products and suppliers.

Why does oil keeps going up and up?

Theoretically, the first reason behind the price of oil on the commodities market is to be found in a geopolitical conflict. Thus, in the 70s, the oil crisis of 1973 was caused by the decision of the Organization of Arab Petroleum Exporting Countries announced it would not export more oil to countries that had supported Israel during the Yom Kippur War, which Israel faced with Syria and Egypt. In 1980, one of the worst oil crisis, the root cause was the war between Iran and Iraq, two countries with the largest number of world reserves, which threatened the oil supply to the rest of the world. At present, the origin of the sharp rise in oil prices is also in the geopolitical tensions that are experienced in the Middle East. In particular, the fight to keep the Turks in Iraqi Kurdistan is creating uncertainties about possible disruptions in oil supplies from Iraq to the world. This Asian country is the fourth largest market by number of oil reserves.

Geopolitical tensions in the Middle East are traditionally responsible for price increases of "black gold". This bind nuclear conflict between the U.S. and Iran. In particular, if there are tensions with the Middle East oil producers like Saudi Arabia, Iran and Iraq, among others, the price of oil rises as it is feared that one of their reactions is cut crude supply to the rest of the world. Moreover, from the analysis department Bankinter ensure that strong oil demand from countries like China and India, declining U.S. reserves and the proximity of winter (stage where more oil is consumed in the year) are generating a significant upward pressure on the also called "black gold."  The current situation, marked by all the above factors, invites us to think that oil will remain at high levels in the coming months. The industry is showing increasingly unable to cope with strong demand and excess production capacity in countries such as Nigeria, Saudi Arabia or Iran is limited. This suggests that prices continue to rise, adds. For his part, from the department of Merrill Lynch analysis estimated that prices may reach U.S. $ 100 in the coming winter, which is expected to colder temperatures than normal. The Bankinter analysis team also believes that oil will continue to expensive, both because of limited reserves and by the tight control exercised over the supply of OPEC (Organization of Petroleum Exporting Countries).

Oil and global economic growth

Despite the extraordinary price increases, which accumulates oil this year, there are many experts now say the economy is more prepared than before to live with this raw material at higher prices. Several experts say that economic growth in the developed world is now much less dependent on oil consumption than it was in the 70's and 80's. Now also increasing interest earning alternative sources of energy generation, such as biofuels. In Europe, moreover, the oil bill, which is paid in dollars, not being as bulky as in the U.S. by the strong pull of the euro. The fact that the European currency is also very expensive (has surpassed the $ 1.44, record high), dilutes the impact of surging oil prices.

But what oil prices would negatively affect the economy? López-Esteras Camacho believes that it is a very difficult question to answer. As pointed out five years ago, analysts estimated that a $ 40 oil demand and significantly damage the global economy. However, the raw material reached this increasingly expensive price and without the continued global economic growth and the demand for energy is seen almost affected. Today, the impact is also quite limited. In fact, prices are compared to those achieved in the 70's and 80's and taking into account inflation, relatively low. In real terms (ie discounting inflation), a barrel of oil should reach $ 100 compared to more expensive that in the 80s lived in the middle of an oil crisis.



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