Average Crude Oil Prices in UK from 2010-2020

Report
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Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Discuss about that average crude oil prices in UK changed over period from 2010-2020.........3
Describe the economic determinants of changes in the crude oil prices in UK..........................4
Government take an action over period of 2010-2020 affected the UK market.........................7
Analyse and predict the immediate, future effects of COVID-19 on the price of crude oil........8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11
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INTRODUCTION
The documentation will discuss about the average crude oil price in United Kingdom and
also identifying changes over period from 2012 to 2020. The report is mainly focused on the
economic condition and situation of nation due to change of crude oil prices. Furthermore, it will
describe that how government will take action towards the period of 2010 to 2020, which
directly affected the marketplace. However, it will be analyse and predict during COVID-19 that
directly effects on the price of crude oil in marketplace.
MAIN BODY
Discuss about that average crude oil prices in UK changed over period from 2010-2020.
The significant fall in the crude oil prices since Mid-2014, should be increased overall the
UK economic activity as decrease the production price for enterprises, especially when
organizations are totally dependent on the various oil inputs. Therefore, it will boost the
employment as well as investment.
Although the gas and oil extraction industry that has negatively affected by the price of
crude oil in UK. As per evidence, it has found that price of crude oil drastically changed and also
effects on the economic condition in different gas and oil industry. In some case, the reduction in
oil price is permanent with settling at $50 per barrel (Asl, Canarella and Miller, 2020). The
current size of UK economic GDP will be increasing approximately 1% on average relative base
line between 2010 to 2020. Furthermore, it also increased the employment rate around 90,000 by
2020. Especially, with a peak boot to the employment around 12, 0000 in 2016 (Wei, Liu and
Hu, 2017).
On the other hand, the significant impacts that are smaller where fall in the price of crude
oil which is temporary. Sometimes, it is depending on how oil price/cost rebound and also boost
the GDP approximately 0.2% to 0.5% (Hayat and et.al., 2020). In order to increase the
employment rate in UK (LE, CHANG and PARK, 2020). In 2014, it has been drastically decline
the oil price/cost and also impacts on the economic condition of UK. At that time, it has been
identified the price of crude oil US$100/barrel market over 2-4 years to mid-2014 (Wei, Liu and
Hu, 2017). Afterwards, it also increased mid-January 2015, oil price has fallen in 2014 June. The
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recent fall in the prices of oil was considered as one of the biggest with completely decline in
recent decade, which being collapse in 2020.
Figure 1
According to survey, it has identified that price of crude oil shocks on the current UK economy
condition. It can be used the computable general equilibrium model that help for impacts on the
future changes in oil price. Through this model, it can be identified the comparison between oil
price/cost 2010 to 2020 (Bateman and Kling, 2020). It is based on the standard tool in term of
economic analysis, which become useful for recognised by multiple large corporation. Moreover,
oil price/cost can be defined into different scenario for 2010 to 2020.
Initially, oil price remain at low level approximately US$50/barrel and gradually
increases to US$75/barrel in 2020 (Hayat and et.al., 2020). Afterwards, it remain constant $108
per barrel mid-2014 (Hayat and et.al., 2020). Moreover, it also representing the significant
impact of changes in oil cost/price on the level of UK. Therefore, it has remain persistently low
at $50 barrel between 2015 to 2020. Thus, it directly impact on the GDP by 1.2% at initial years
(Wei, Liu and Hu, 2017).
Describe the economic determinants of changes in the crude oil prices in UK.
It is likely that both increases the demand and supply chain disruption, which have exerted
upwards pressure on the crude oil prices/cost. Nowadays, it has been rapidly increasing the crude
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