The history of price fluctuations of crude oil by Corporate Munim. Corporate Munim is a leading ERP Software Solution provider company in India. Also providing Oil & Gas ERP Software Solutions across the world.

1. Crude Oil and it’s price history
by
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2. Indices are the mediums through which the buyers and sellers conduct trading of
crude oil. Some of the well known crude oil indices are Brent, West Texas
Intermediate, Dubai Crude, OPEC reference basket etc.
Price of the oil refers to the spot price of one barrel of crude oil in various indices
such as WTI, Brent, Dubai Crude etc.
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3. But of all these there are several other political, economical factors which have
affected the supply and demand of crude oil which has thereby resulted in
drastic fluctuations in their price.
Price of crude is determined by various factors such as it’s specific gravity, it’s
sulphur content, it’s location etc.
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4. So let us examine the history of price
fluctuations of crude oil.
Rising demand for crude oil in developing countries such as India and China have
resulted in significant price rise of oil.
The decade of 1998-2008 saw a steep rise in the oil prices.
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5. 2008
• By mid of year 2008,precisely July 2008 the oil
prices had reached 145 $ /barrel
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6. 2008
• By mid of year 2008,precisely July 2008 the oil
prices had reached 145 $ /barrel
• But then the Global Financial crisis led to
severe decrease in the demand for crude oil
which eventually caused a sharp fall in the
price of crude oil.
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7. 2009
• By February 2009 the prices sank below 40 $
/barrel.
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8. 2011
• Again by 2011 due to political unrest in Egypt
which led to decrease in the oil production the
crude oil prices rose sharply.
• For about 3.5 years the prices of oil remained
largely in the range of 90-120$ per barrel.
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9. 2014
• By 2014 US started producing oil from it’s own
oil fields resulting in sharp increase in the oil
output thereby bringing down the oil prices to
below 30 $ per barrel.
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10. One major oil price fluctuation
was in the year 1973
Reason :- Arab oil embargo
Embargo means restrictions imposed on a
particular country on trade and exchange of
goods.
This resulted in severe shortage of oil in
1973 resulting in sharp increase in the oil
prices.
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11. Wars also result in sharp fluctuations
of oil prices.
• Year 1951 -1953 ,Korean war oil prices rose
from 17 $ to 20 $ per barrel
• Year 1950-1970, Vietnam War oil prices
declined to 20 $ per barrel.
• Year 1990, Gulf war oil prices sky rocketed to
65 $ per barrel.
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12. According to a very recent report by
Deloitte a global audit and
consulting firm if the current oil
prices were to sustain for some
more time 35 % of listed oil and gas
exploration companies face the risk
of bankruptcy.
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13. Timeline InfoGraphic on Crude Oil and
it’s price history
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14. THANKS
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