Contemporary Business Environment: Impact of COVID-19 on Crude Oil Prices

Contemporary
Business Environment
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Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
1.How have average Crude Oil prices in the UK changed over the period from 20010 – 2020?
.....................................................................................................................................................4
2. 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?.................4
4.Examine and predict the immediate and future effects of COVID-19 on the prices of Crude
Oil?..............................................................................................................................................4
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................4
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INTRODUCTION
Contemporary business environment is the environment which keeps on changing after a
period of time. It helps in developing the long term goals of the business. This type of
environment is also known modern business environment. It helps in analysing the market
situation so that goals of the business can be achieved effectively. With the helps of
contemporary business environment company can easily identify the threats which will helps in
increasing the profit of the business in the market. It also provides various opportunities to the
business to so that revenue of the business can be increased in the market and goodwill of the
business can be increased. It also develops the adaptability in the organisation so that rapid
changes cannot affect the performance of the business and goals of the business can be achieved
effectively. If the organisation will analyse the opportunities it will helps the bushiness to
achieve its goals effectively better opportunities helps the business in the utilisation of the
resources which improves the performance of the business.
Oil and gas industry of UK plays an important role in development of the UK economy. Oil
helps in transportation of the economy and gas helps in producing electricity which helps in
satisfying the needs of the economy. Oil and gas industry helps in providing economic benefit to
the country which helps in the increasing the GDP of the country. It helps consumers with low
energy cost which helps in maintaining the lifestyle of the economy. It also provides the
transportation facility to the economy so that better development can take place. In this report it
will be analysed that how contemporary business environment helps in the growth of the oil and
gas industry of UK (Nikitina and Lapiņa, 2019).
MAIN BODY
1.How have average Crude Oil prices in the UK changed over the period from 20010 – 2020?
As per the below graph prices of the crude oil has been steadily increased in February
2011 to $100 per barrel reason behind the increase in the prices was over supplies during the
Arab spring. Due to which prices has been increased in April 2011 to $125. during the period of
three and half years prices of the oils was stable between $100-125per barrel which helps in the
stability of the economy. In the year 2014 second half prices of the crude oil fell rapidly to $50
barrel due to poor global growth demand of the crude oil fell in the market. In the year 2016
again prices has been fell to $27 per barrel due to increase in the supply of the Crude oil. From
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