Contemporary Business Environment: UK Crude Oil Prices, Economic Determinants, Government Action, and COVID-19 Impact

Contemporary
Business Environment

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
1.How have average Crude Oil prices in the UK changed over the period from 20010 - 2020? 3
2.What are the economic determinants of the changes outlined in your answer to Question 1?.4
3.How has government action over the period 2010-2020 affected the UK market?..................6
4. Analyse and predict the immediate and future effects of COVID-19 on the prices of Crude
Oil?...............................................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Contemporary Business Environment is defined as the market where competition is at
higher level and even changes in the market can be seen at a very fast speed. In this type of
market, there are different types of factors which must be consider because that certainly has a
huge impact on day to day activity. In context of the file, UK Oil and Gas industry will be
considered and that changes which has been seen within this particular sector since last 10 years
will be majorly focused (Shukla and Karki, 2016). On the basis of oil and gas industry, its prices,
economic determinants will be overviewed. Along with it, different actions which will be taken
by government in past few years and even future effect of COVID-19 on crude oil will be
analysed.
MAIN BODY
1.How have average Crude Oil prices in the UK changed over the period from 20010 - 2020?
Crude Oil can be defined as the natural occurring and unrefined petroleum product which
is formed with the help of hydrocarbon deposits along with number of other organic materials.
Further crude oil can be refined for the purpose of using oil as gasoline, diesel as well as number
of other petroleum products. The demand for crude oil is huge in the market and in present it is
almost impossible to depend upon other factor as a alternate of crude oil. Each of the nation is
directly dependent upon crude oil for its economic growth. It is because whenever price in crude
oil increases then inflation rate increases which certainly slowdown the economic growth of the
company (Rui and et. al., 2018).
The history of last ten years shows that there is a rapid speed flow of the price in crude
oil. The price has been never stable in crude oil and the major benefit is obtain by the country
where crude oils are found. Even there are different types of taxes which are included at the of
bringing the crude oil within the nation. It is one of the main reasons that price is changing on a
regular basis. As demand of crude oil is increasing at a rapid speed which means that price is
also increasing. For example: the prices of crude oil have declined significantly because of the
requirement of oil in the global pandemic COVID-19.

In context of United Kingdom, although there is a great requirement of crude oil but at the same
time since year 2008 there was a huge downfall. But in year 2010, it again started to increase the
price which was 75 US$/barrel. There was continuous increase in price of the crude oil and it
was found that in year 2014 it almost reached up to 125 US$/barrel. It has increased the overall
price of price which means that there were some of the situation of inflation but country like UK
also started to focus towards other solar energy to perform their work (Perrons, 2014). It simply
means that price has against started to slowdown which is a positive sign for the nation like UK.
The continuous slowdown of the price since year 2014 has allowed the nation to improve their
overall economic condition. In year 2019, the price of crude oil for per barrel was 59 US$.
In short, it is said that whenever price of the oil and oil product changes, the direct impact
can be seen upon the nation where different activities are performed at a greater speed. The
nation simply gets number of advantages at the time when prices reduces because there is better
opportunity to perform any of the work at a minimum price which is the key line to attain
success in current scenario.
2.What are the economic determinants of the changes outlined in your answer to Question 1?
The current market says that there are different factors included which has a direct impact
on day to day activity. In the similar manner, it is said that price of crude oil is increasing and