this is a general definition ofGlobal Market of Oil

1. Global market of oil
Presented by:
Mashkhal kawa
Barham jalal
Mahmood ghazi
Supervised by:
Dr.Pshtewan

2.  Definition of oil.
 Types of oil.
 What is oil made of?
 What is oil used for?
 What is OPEC?
 The integrated world oil market.
 Factors of oil market.
 Oil prices.
 What causes low Oil prices?
 What happen if oil prices go up or down?

3. Definition of oil:
Is a viscous liquid
derived from
petroleum ,
especially for use as
a fuel or lubricant.

4. Types of oil:
Type 1: Very Light Oils (Jet Fuels, Gasoline)
Type 2: Light Oils (Diesel, No. 2 Fuel Oil, Light
Crudes)
Type 3: Medium Oils (Most Crude Oils)
Type 4: Heavy Oils (Heavy Crude Oils, No. 6 Fuel
Oil, Bunker C)

5. Crude oil was made over
millions of years from
tiny plants and animals,
called plankton. It is held
in tiny spaces in
underground rock, like
water in a sponge, Some
rocks have tiny spaces
called pores. The rocks
with these pores can hold
the oil like a sponge.

6. We use oil for a long list of applications, including:
 Transportation Fuels (Gasoline, Diesel, Jet
Fuel)
 Asphalt
 Military and defense
 Fertilizer
 Heating
 Feedstock
 Petrochemicals
 Plastics
 Polyurethanes
 Solvents
 Electrical generation

7. OPEC is the Organization
of the Petroleum Exporting
Countries. Its mission is to
secure a return to oil
investors and an economic
supply of oil to consumers.
What is OPEC ?

8. OPEC formed when the international oil market was
largely separate from that of centrally planned
economies and was dominated by multinational
companies

10. The Nature of an Integrated Market :
oil is misguided,
because analysts often
have misunderstood the
nature of the oil market.
It is fruitful to think of
the oil market as a single
integrated world market

11. How long does it take
to discover oil and
bring it to market?
The time required depends on where the
oil is and thus how difficult it is to
discover, test and develop.

14.  If oil prices are too high, then these goods
and services become more expensive and
economies experience inflation.
Alternative forms of energy would also
become more cost-competitive, but oil
producers would eventually increase their
supplies and prices would come back
down.

15.  Low prices of crude
oil can be caused by a
number of factors.
Basically, it could be
due to an imbalance
between supply and
demand - too much
supply or too little
demand. .

16. If oil production
rises faster than
demand, then
prices can fall and
all oil producers
will suffer. In the
long run,
consumers will also
suffer if the oil
industry is
unprofitable and
unattractive to
investors.

17. If oil prices are too low, consumers would waste
this non-renewable resource, investors would
not be attracted to the industry and oil
producers would suffer - especially the
developing countries that produce oil, such as
the OPEC Member Countries. If prices were too
low, supplies would eventually fall until there
was a price shock - leading back to inflation.

18.  DIFFERENT TYES OF OIL
 ZAWYA
 Factors Affecting Crude Oil Reserve Growth
 The Economics of an Integrated World Oil
Market
 www.geohelp.net/wold.html
 www.opec.org
 www.economist.com
 www.answers.com
 www.eccons.us