International Oil Market

In recent years, China's real GDP has been growing at an amazing growth rate of 10% per year. While the economy is growing strongly, demand for energy is also rapidly growing. Figure 1 clearly shows the oil consumption and production method that country tends to import from various countries. China produced 379,800 barrels of oil a day and consumed 82 million barrels of oil a day in 2009. This means that China must import about 44.402 million barrels of oil a day to meet the daily consumer demand.

"... ... the security of oil supply is still a serious problem for China There is no other way to deal with this supply gap besides oil import unless oil demand is sharply reduced.In this case, The market will be heavily influenced by trends in oil imports in China. "The Daqing oil field, China 's largest oil field, provides a clear case study on this process. In order to maintain the current production level and reduce the decline rate, China must adopt advanced oil recovery recovery technology known as "high cost and environmental impact" to reduce net energy production Hmm.

The high price impact on the international oil market has disrupted the Pakistan economy and the existing imbalance. Until 2003-2004, the impact of international oil processing remained infinite. This is due to the sustainable level of worldwide prices for domestic prices, worldwide favorable conditions, and increased capital inflows. In fact, this may be due to the gradual increase in international crude oil prices. With this figure, the recent rise in oil prices has created a big gap between imports and exports.

In Pakistan, Oil and Gas Regulatory Authority (OGRA) has decided that oil prices will pass through domestic consumers, but oil prices in the international oil market fluctuate every day, but in Pakistan every 15 days. International crude oil prices affect almost all areas of the country from transportation to agriculture. Therefore, petroleum is the backbone of every economic sector and plays an important role in every economic development.

The shale oil production capacity revolution in the United States brought over oil supply in the international market, but Saudi Arabia, the world's largest oil producer, has maintained its production capacity. As a result, petroleum will be oversupplied in international markets and prices will fall. Most products are denominated in US dollars. However, the value of the dollar is rising this year, and the cost of trading goods in local currency is higher. As a result, emerging markets that maintain dollar exchange rates are usually affected by the strong dollar. As a result, sales of products as a whole are decreasing.