{
  "id": "RL32530",
  "type": "CRS Report",
  "typeId": "REPORTS",
  "number": "RL32530",
  "active": false,
  "source": "EveryCRSReport.com, University of North Texas Libraries Government Documents Department",
  "versions": [
    {
      "source": "EveryCRSReport.com",
      "id": 306628,
      "date": "2005-06-09",
      "retrieved": "2016-04-07T19:42:40.934029",
      "title": "World Oil Demand and its Effect on Oil Prices",
      "summary": "The price of oil began rising in October 2003 and reached record levels in 2004 and again in\n2005. \nAs a result of these price increases, consumers\u2019 budgets have been under pressure, business\ncosts\nhave risen, and oil producers\u2019 profits have increased. The 109th Congress is considering \nbroad\nenergy legislation ( H.R. 6 ), that addresses conditions in the oil and petroleum products\nmarkets.\n \n A long term explanatory factor for increasing oil prices could be the decline of the world\nreserve base. The reserves to production ratio is the measure which indicates the world\u2019s\nability to\nmaintain current production, based on proved reserves. Over the past decade there has been little\nchange in the reserve to production ratio, suggesting that, at least for now, long term forces are not\ndriving up the price of oil.\n \n A wide variety of cyclic and short term factors have converged in such a way that the growth\nof demand has been unexpectedly high causing upward pressure on oil prices. Those factors which\nhave been identified as contributing to the high price of oil include the resumption of relatively rapid\ngrowth rates of gross domestic product in many countries around the world, a declining value of the\nU.S. dollar, gasoline prices, the changing structure of the oil industry, OPEC policies, and the\npersistently low levels of U.S. crude oil and gasoline inventories.\n \n Expectations concerning future market conditions are quickly embodied in oil prices formed\nin futures markets like the New York Mercantile Exchange. The fear of terrorism and war,\nuncertainty concerning the relationship between the Russian government and the oil company Yukos,\nand other political factors are quickly reflected in price along with real political unrest like that\nexperienced by oil producing Venezuela and Nigeria. Speculative buying and selling might also\naffect prices as financial traders adjust their investment portfolios to reflect expected market\nconditions. \n \n Demand patterns for world oil and oil products show significant diversity by country, region,\nand product groupings. As a result of this diversity it is not possible to attach blame for the current\nlevel of price to any one nation, region, or product segment. The view that the oil market is\ninternational in scope and tightly interrelated is enhanced by the demand data.\n \n As a result of the integrated nature of the world oil market it is unlikely that any one nation\nacting on its own can implement policies that isolate its market from broader price behavior. As new\nmajor oil importers, notably China, and potentially India, expand their demand, the oil market likely\nwill have to expand production capacity. This promises to increase the world\u2019s dependence\non the\nPersian Gulf members of the Organization of Petroleum Exporting Countries, especially Saudi\nArabia, and maintain upward pressure on price.\n \n This report will be updated.",
      "type": "CRS Report",
      "typeId": "REPORTS",
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    },
    {
      "source": "University of North Texas Libraries Government Documents Department",
      "sourceLink": "https://digital.library.unt.edu/ark:/67531/metacrs7106/",
      "id": "RL32530 2004-08-18",
      "date": "2004-08-18",
      "retrieved": "2005-09-27T14:04:50",
      "title": "World Oil Demand and the Effect on Oil Prices",
      "summary": "Demand patterns for world oil and oil products show significant diversity by country, region, and product groupings. As a result of this diversity it is not possible to attach blame for the current level of price to any one nation, region, or product segment. The view that the oil market is international in scope and tightly interrelated is enhanced by the demand data. As a result of the integrated nature of the world oil market it is unlikely that any one nation acting on its own can implement policies that isolate its market from broader price behavior. As new major oil importers, notably China, and potentially India, expand their demand, the oil market likely will have to expand production capacity. This promises to increase the world\u2019s dependence on the Persian Gulf members of the Organization of Petroleum Exporting Countries, especially Saudi Arabia, and maintain upward pressure on price.",
      "type": "CRS Report",
      "typeId": "REPORT",
      "active": false,
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          "format": "HTML",
          "filename": "files/20040818_RL32530_ffbebb024ca3ef67ddc35f031cd60ff6513264a9.html"
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      ],
      "topics": [
        {
          "source": "LIV",
          "id": "Energy",
          "name": "Energy"
        },
        {
          "source": "LIV",
          "id": "Petroleum prices",
          "name": "Petroleum prices"
        }
      ]
    }
  ],
  "topics": []
}