Special Topics in Economics Econ. 491 Chapter 9: Oil Market Report

I. Oil Market Developments Report  The report analyzes the developments about oil prices during a particular period of time (month, quarter, year).  The report consists of three sections; oil prices developments, factors affecting oil prices, and expectations ( Oil demand & supply, and Oil prices).

II. Oil Prices Developments  In this section, the changes in oil prices are described based on numerical data.  A numerical table is used in this section to show the changes in the oil prices.  Sources of the oil prices figures can be obtained from different places but mainly from Reuters.

Oil Market Developments Report Oil Market Developments Report   The prices of oil have continued to be influenced by many economic and other developments. Oil prices ……. (increase / decrease) at the end of month X compared to month Y. First; Oil Prices Developments “The price of WTI …….(increases / decreases) at the end of month X. Particularly, the price of WTI closed at ……(higher / lower) rate by ….% in month X compared to the month Y closing rate” Source: Reuters StatementClosing rate in the last month (Y) Closing rate in the current month (X) Change rate (%) Highest levelLowest level West Texas Intermediate (WTI) % Brent %

According to the graph, What is happening to oil prices? “The price of WTI is …….(fluctuating/ relatively stable) at (narrower/broader) range during month X. Particularly, the price of WTI fluctuates at ……US dollar range by during month X compared to month Y” “The price of WTI is …….(fluctuating/ relatively stable) at (narrower/broader) range during month X. Particularly, the price of WTI fluctuates at ……US dollar range by during month X compared to month Y” Oil Prices Development (Dollar per Barrel) WTI Brent US Dollar

Second; Factors Affecting Oil Prices “There are many reasons causing the upward trend in crude oil prices during the month of X, the following are the main reasons”: 1- Reduction in US Oil Refinery Reserves Source: US Energy Information Administration “According to the table above …………….” 2- Political instability in Arab countries StatementReserves at the end of month (Y) Reserves at the end of month (X) Change rate (%) Oil Refinery Reserves %

“On the other hand, there are other factors that limit the increasing trend for the oil prices during the month X. These factors are as follows:“ 1- The Decision Announced by OPEC for Increase Oil Production “On the 12 th of month X, OPEC decided to change oil production in Month X “ “According to the table above …………….” COUNTRYMonth Y Month X OPEC Quota Actual Difference (Level) Actual Difference as % of OPEC Quota (%) Kuwait Source: OPEC

2- Increase in US Oil Reserves Source: International Energy Agency “According to the table above …………….” StatementReserves at the end of month (Y) Reserves at the end of month (X) Change rate (%) Oil Reserves %

Third; Expectations 1- Oil Demand & Supply “The IEA expected in its monthly report released on the 12 th of month X that average demand for 2013 ……….. Average supply for 2013 ……” “ a table or graph can be helpful in this section” 2- Oil Prices “The IEA expected in its monthly report released on the 12 th of month X that average oil price for 2013 ………..” “ a table or graph can be helpful in this section”