This came a little late for the day but nonetheless, I still do have to write a business news that might interest everyone. The chosen topic that caught my interest for today was about Oil Climbs to 18-Month High as Kuwait and Oman Fulfill OPEC Cuts.
Anything about oil is big news for businessmen. They either produce, supply or consume oil in their operations. This news is a big blow that affects everyone but the mostly affected are the consumers which are the general public. The 18-month high being mentioned on the title was about the 18-month high price of oil in the world market as a result of the cuts in production.
Economics would dictate that once the price is high, the demand would significantly decrease. That was the aim of the OPEC or the Organization of Petroleum Exporting Countries. Looking through the big picture, there shouldn’t be that much increase in prices because the related cuts on production was aimed to stabilize the market of bloated inventories, but China’s manufacturing firms would not agree. They are in need of oil and are desperate enough to buy petroleum products for their plant facilities, thus, the start of the price hike.
I am not blaming a country of sorts, but that’s what cited on the article. It is as if they are totally against China, whereas China is only the second largest oil consumer in the world. I really do wonder how these kind of articles would help the world in attaining continuous peace. It was as if China was singled out for consuming the bulk of the petroleum products.
Looking at the world, every country uses oil but not every country has the ability and capability to produce oil. Oil has become a commodity by every country that once its price was affected, the foreign exchange rates and commodities are also affected. With every country aiming to develop themselves, oil consumption would not decrease but rather increase moving forward unless there is a cheaper way to do efficient and effective business without the need of oil in their operations. What must be settled is to determine the equilibrium level rather than blaming a consumer.
Thank you for reading! Do you find it boring? Is it understandable? Feel free to express yourself in the comments and if you liked it, feel free to reblog.