Developments in Oil Prices and the Factors Influential in for the Period (2004-2015).

Abstract

The current research aims to study the main developments in Oil Prices and determine the factors that caused Oil prices to be unstable during the study period. The research also aims suggesting solutions to the issue of oil prices fluctuations.The study depended on descriptive analytic approach which analyzes statics of Oil international production and consumption. The study comes up with several results, such as crude oil prices were heavily shacked during the period 2004 -2015, started when the price drove from (96$) in 2008 to (61$) in 2009, after that prices raised into (109$) in 2012 before driving again gradually into (49$) in 2015, and (34$) in the first half of 2016. The research shows that the political and economic factors had the most effective role in driving crude oil prices, besides other less effective factors such as oil markets, speculators and the US$ exchange rates. The research proposes some recommendations among which is the suggestion to the OPEC Countries to leave the oil price to be determined by Supply and demands laws, and keeping the oil prices less than (90$) in medium-terms.