Oil is the most needed thing of the world. Oil is used in hundreds of different processes. Oil is used in motor vehicles, machineries, manufacturing of many things and also for other so many tasks. Everything in the market depends on price oil. If the price oil is low, everything will be available on really low rates but when the price oil increases in the international oil market, everything in the market is available on high and increased prices. The importance of oil cannot be ignored as it is used in almost every field of market.
There are various reasons of higher price oil that must be determined to avoid further increase of price oil and also its shortage. Usually if the demand of a product is increasing, its price will also be increasing so this happens also with the price oil.
Expertise normally says that price oil increase due to its high demand. Oil is said to be the basic need of any country to carry its different tasks, so countries that are rich in oil resources have strong influence on other countries of the world. They are the main suppliers of the oil so they have the right to determine the price oil.
In each country, there is a huge difference between price oil and its usage also. Price oil is according to the usage and the policies of particular country. There are different analysts also of different countries who have the responsibility to determine the price oil.
Normally government officials or the petroleum minister determines he price oil according to the county’s policies. Price oil is also determined by analyzing the usage and demand of oil. To determine the price oil is not an easy task, so there are various experts of particular field to do this job.
Price oil is determined only by calculating the whole scenario of the country. Analysts make a brief report about the supply and demands of the oil in country. They also have to keep in mind the future risks, so they determined the price oil which is best suitable for the users.
Expertise always determines the price oil that is suitable for the users and that also helps the government financially. If the price oil is too high in the international market, government used to give subsidy on the oil prices to give a relief to the users.
Countries that are not strong economically have to face real problems if the oil prices are high in the international market but they do their best to give the suitable subsidy on the oil prices. Analysts of the country should calculate the oil prices on the daily basis to avoid the threat of future loss. Different company systems depend on the correct oil prices so this is a big need to determine the appropriate oil prices. If the oil prices are too high the transportation system is badly affected and the public will have to bear high transportation rents. So this is the duty of expertise and government to determine the best price oil to give users a relief.