Evaluating Artificial Manipulation of Oil Prices in the Global Economy

This report investigates the factors responsible for price disruption in the oil and gas sector, focusing on the artificial manipulation of oil prices within the global economy. The study employs a mixed-methods approach, combining qualitative and quantitative research, and utilizes both interpretivism and positivism philosophies for data analysis. The research aims to analyze global oil and gas sector trends, understand price disruption concepts, assess disruption factors, and identify improvement strategies. The literature review covers the concept of price disruption, its influencing factors like operational costs, transportation, and political factors, and methods to improve sector performance, such as applying new standards and improving pricing strategies. The report is structured into five chapters, covering the introduction, literature review, methodology, data analysis, and conclusions, providing a comprehensive analysis of the issues and potential solutions within the oil and gas market.

To identify the factors responsible for price disruption in
oil and gas sector: An evaluation of artificial manipulation
of oil prices across the world economy.
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ABSTRACT
Oil and gas sector which is operated at global level is facing major issues in related to
price level. In the present study, the researcher has been focused on the study of analyzing the
factors which create a situation of price disruption. By having an improved focus on the factors
which impact economic conditions and operational activities of oil and gas sector the issue can
be addressed in an appropriate manner. In the present study, mixed approach has been used by
scholar. Moreover, in this both qualitative and quantitative investigation type has been selected
by scholar. In this way, by addressing the issue according to such approaches researcher can
present the fair view of study. Besides this, data has been gathered and analyzed by scholar
through the means of both interpretivism and positivism philosophy. Further, it has been
articulated from primary data investigation that global oil and gas sector is facing high level of
issues in relation to the maintenance of price level. It can be seen in the report that large number
of economists said that by employing new standards and rules companies which are operating in
oil and gas sector can deal with the issue of oil disruption.
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Table of Contents
INTRODUCTION...........................................................................................................................4
Background of the study..............................................................................................................4
Rationale of research...................................................................................................................4
Research aims and objectives......................................................................................................5
Significance of the study..............................................................................................................5
Structure.......................................................................................................................................5
Literature Review.............................................................................................................................6
RESERACH METHODOLOGY.....................................................................................................8
Research approach.......................................................................................................................8
Research philosophy....................................................................................................................8
Research type...............................................................................................................................8
Data collection.............................................................................................................................9
Sampling......................................................................................................................................9
Data analysis technique...............................................................................................................9
Ethical consideration..................................................................................................................10
Research limitations...................................................................................................................10
Data Analysis.................................................................................................................................10
CONCLUSION and recommendations..........................................................................................25
REFERENCES..............................................................................................................................27
Appendix........................................................................................................................................29
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4

INTRODUCTION
Background of the study
In the current market, the oil and gas sector plays a critical role in economic
development. It has been noticed that at global the sector is facing the key issue regarding price
disruption. A situation in which market focuses on the functional aspects to meet the regular
values. Along with this, diverse characteristic and rapid aspects are also being considered
because market faces the issue in decline (Inkpen and Moffett, 2011). In addition to this, it can
be said that market disruption is also considered as the critical aspect in which panic conditions
is being faced by the companies. In addition to this, it can be said that price disruption also
creates a challenging circumstance for the organization in which overall outcome might get
affected (Kelland, 2014).
In the present study, the researcher will focus on the study of analyzing the factors which
create a situation of price disruption. By having an improved focus on the factors which impact
economic conditions and operational activities of oil and gas sector the issue can be addressed in
an appropriate manner. Moreover, the innovation in the work activities is also essential so that
issue can be resolved. The researcher will also focus on ways that might help in meeting
objectives.
Rationale of research
What is the issue?
The key issue of the present report is a disruption in the pricing of oil and gas products.
In the current market, the businesses are focused towards business expansion so that goals and
objectives can be accomplished in the desired manner, but due to market fluctuations the issue of
price disruption occurs and impact the working (Entrekin and et.al., 2011). It is significant for a
business firm to understand the concept of price disruption and factors that cause working of the
organisation.
Why is it an issue?
Oil and gas sector plays a critical role in the international economy, so any changes in
pricing and working also impacts the economic system. Due to changes in work practice of oil
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and gas sector, the policies of other sectors also get influenced which impact the economic
development in a diverse manner (Gregory, Vidic and Dzombak, 2011).
Manipulation in pricing is also a key issue in the sector which also influences the overall
outcome in context to economic development. Along with this, there are some factors which
create a disruption and manipulation in the industry (Inkpen and Moffett, 2011). Many
companies are not aware of the factors that impact the work style and create price disruption, so
it is also significant to understand in the appropriate manner.
What could this research shed light on?
To light the research issue, the researcher will focus on the evaluation of diverse factors
which plays the key role in working with oil and gas sector. By having an improved focus on the
research, the key values of the sector will be analyzed so that reason behind price disruption can
be analyzed in a critical manner (Kelland, 2014). It will also allow identifying the factors
responsible for price disruption in oil and gas sector.
Research aims and objectives
 To analyze the trend of global oil and gas sector.
 To develop understanding about the concept of price disruption.
 To assess the factors that are responsible for oil-disruption that takes place in oil and gas
industry.
 To identify the ways through which condition of oil-disruption can be improved.
Significance of the study
Oil and gas price disruption is the major issue of economy and that have major impact on
global growth and conditions. In this, such study will provide high level of assistance to scholar
in analyzing the trend of such sector who is planning to conduct investigation on similar topic.
Further, by considering the outcome of study both OPEC and non-OPEC countries can develop
highly suitable and competent framework (Kelland, 2014). In this way, such study and its
outcome are highly significant which in turn provides high level of assistance to scholar as well
as oil and gas companies in making highly suitable framework.
Structure
In order to prepare thesis in a highly structured way five chapters have been included by
scholar. Hence, in the first chapter of study researcher has clearly mentioned aims and objectives
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of study. Besides this, in such chapter researcher also presents significance and rationale behind
conducting of study. Along with this, in the second chapter researcher evaluates the view points
of different scholar in a critical way. By this, researcher prepares brief thesis which in turn helps
in analyzing and evaluating data in the best possible way. In the third chapter, researcher
identifies methodology which highly suits to the present study. Thereafter, in the fourth and fifth
chapter researcher has analyzed and concludes all the findings.
LITERATURE REVIEW
Introduction
After the introduction of the research, the next chapter is literature review. It forms an
important section of the dissertation. In this section, information which the researcher has
gathered from a range of secondary sources is presented. In addition to this, it can be said that
statements provided by different authors in context to the subject will be evaluated. By having an
improved focus on the literature review the research gape can be addressed in appropriate
manner. Along with this, critical review of different authors documents is also being considered
as a critical aspect for the study. In present study the literature review will focus on effective
understanding of price disruption so that objectives of overall research can be accomplished. It
will also provide an information in regard to factors that influence the price disruption so that
goals and objectives can be accomplished in desired manner. By providing a highlight on the
diverse values which are associated with subject. Moreover, the ways to improve the working of
oil and gas sector will also be referred in appropriate manner. With an assistance of this, better
understanding in regard to the subject can be evaluated effectively so that effective outcome of
study can be attained.
Concept of price disruption
Price disruption is considered as a phase where business firm faces the issues in regard to
pricing. It is significant for businesses to have proper understanding in regard to price disruption
so that goals and objectives can be accomplished in desired manner. In addition to this, it can be
said that price volatility is being a critical aspect which influences overall outcome effectively. A
situation in which price volatility increases in diverse way the financial issues are occurred in the
sector. It increases the operational cost of overall process which influences the stability aspects
within oil and gas sector. According to (Entrekin and et.al., 2011), a global financial crisis in oil
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and gas sector also occurs due to price disruption. It also enhances the circumstances that
demand high level of changes so that sustainable aspects can be promoted effectively. Price
disruption is considered as critical because it impacts the effectiveness of overall processing in
diverse manner. In the current market, the oil and gas sector plays a critical role in economic
development. It has been noticed that at global the sector is facing the key issue regarding price
disruption. Gregory, Vidic and Dzombak, (2011) has stated that a situation in which market
focuses on the functional aspects to meet the regular values. Along with this, diverse
characteristic and rapid aspects are also being considered because market faces the issue in
context to decline. In addition to this, it can be said that overall outcome in context to the
economic conditions are not effective due to high level of price disruption. Overall trade
activities also get influences which create instability within business. Market disruption is also
considered as the critical aspect in which panic conditions is being faced by the companies. In
addition to this, it can be said that price disruption also creates a challenging circumstance for the
organization in which overall outcome might get affected. It has also been contended that by
having an improved focus on the disruption concept the business firm can improve work
conditions.
Factors that impact price disruption
Inkpen and Moffett, (2011) has contended that there are number of factors which might
impact the working of oil and gas sector and causes price disruption. One of key factor is costing
of diverse operational activities. It might affect the overall outcome and create issues. If
company is having appropriate understanding about further working in context to economic
values then further issues can be overcome. It has been noticed that any kind of changes in the
transportation cost might increase the overall cost. It causes the price disruption and impact the
overall working of organisation. Kelland (2014) has asserted that Oil and gas sector plays a
critical role in the international economy, so any changes in pricing and working also impacts the
economic system. Due to changes in work practice of oil and gas sector, the policies of other
sectors also get influenced which impact the economic development in a diverse manner. In
addition to this, it can be said that pricing need to consider as a critical aspect for sustainable
development. Along with this, changes in international aspects like political differences are also
critical aspect which might affect the overall outcome. If political aspects are not properly
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maintained then it will influence the working in diverse manner. Moreover, the overall changes
in work aspects are also a factor which might affect the overall outcome.
Ways to improve working of oil and gas sector
Memmott, Craze, Waser and Price (2007) has contended that there are number of ways
that can be employed by businesses in order to improve the working of oil and gas sector. It has
been noticed that by having application of new standards in context to operations so that cost can
be controlled. With an assistance of this, oil and gas working can be improved. Improvement in
pricing strategy might help in overcome the issue of price disruption. Along with this, it has been
noticed that improvement in operational activities is also significant because it helps in
sustainable development. Transportation standards also need to be improved so that goals and
objectives can be accomplished effectively.
RESERACH METHODOLOGY
Research approach
Inductive and deductive are the main two approaches which in turn helps researcher in
finding suitable solution of the issue. Researcher needs to select approach of the study by taking
into consideration the type of investigation undertaken (Cuomo and Massaro, 2016). To identify
the factors which may cause of price disruption in the oil and gas sector mixed approaches of
research has been used by scholar. Moreover, in this both qualitative and quantitative
investigation type has been selected by scholar. In this way, by addressing the issue according to
such approaches researcher can present the fair view of study.
Research philosophy
Philosophies of the research can be divided into two parts such as interpretivism and
positivism philosophies. Such philosophies clearly provide deeper insight to the researcher about
the way in which data will be gathered and analyzed by scholar (Wiek and Lang, 2016). Hence,
in this, data had gathered and analyzed by scholar through the means of both interpretivism and
positivism philosophy.
Research type
Qualitative, quantitative and mixed are the main two research types which can be used by
scholar for assessing the factors that are responsible for price-disruption occurs in oil sector. In
the present study, mixed approach has been used by scholar. On the basis of this aspect,
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qualitative investigation has been conducted by researcher to analyze qualitative facts. Further,
quantitative tools also have been applied by scholar to determine solution from secondary data
gathered from varied sources. Hence, by considering all such aspects mixed approach has been
selected by scholar.
Data collection
Data is the main input which in turn helps researcher in finding suitable solution of
problem is going to be investigated. In this, primary and secondary are the main two types of
data which can be gathered by scholar for analyzing the extent to which different factors have
influence on the prices of oil and gas sector (Hussain and Khuddro, 2016). In the present study,
both primary and secondary data has been gathered by scholar to assess the major factors which
have high level of influence on the changes that take place in oil and gas sector.
Thus, survey has been conducted by researcher via questionnaire on 5 economists of UK.
Moreover, economists have better knowledge regarding the level to which one factor has impact
on another. Further, secondary data in relation to oil prices, institutional investment and
exchange rate has been gathered from the period of 2007 to 2016. Thus, by making analysis of
such data outcome researcher has identified the factors that closely influence the price level of
oil and gas industry.
Sampling
For organizing and getting highly valuable information from survey researcher is
required to select suitable sample size. Moreover, it is not possible for researcher to conduct
investigation on whole population (Castleden and et.al., 2017). In this regard, by taking into
account simple random sampling 5 economists have been selected by scholar for conducting
survey in an effectual way. Thus, by taking reviews from economists research has assessed the
factors due to which oil prices fluctuate.
Data analysis technique
Data analysis is the process of recording and analyzing data in a highly structured manner
through the means of logical and statistical tools (Kondziella and Bruckner, 2016). To analyze
the gathered data set both thematic and SPSS tools have been applied by scholar with the aim to
assess suitable solution. Hence, by preparing several themes views of respondents have been
analyzed by scholar. Beside this, SPSS tool such as regression has been applied by scholar to
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determine suitable outcome or solution from secondary data gathered relation to exchange rate,
oil prices and institutional investments. In this way, by testing hypothesis and evaluating the
respondents view researcher has presented the major factors that have high level of impact on oil
prices.
Ethical consideration
To raise the effectiveness of study researcher has followed all ethical aspects to the
significant level. Hence, before sending questionnaire to the respective economists scholar has
taken permission from them. This aspect clearly shows that research has not compelled anyone
in relation to filling of questionnaire. Further, researcher has clearly presented the specific
section of references and made proper citation of related source. Along with this, researcher has
also maintained high level of confidentiality of data gathered from several economists. For this
purpose, researcher has made use of high-tech software’s and techniques. Hence, all these
aspects clearly present that ethical rules and regulations have been followed by scholar to the
significant level.
Research limitations
In the present study, there are some limitations which closely influence the significance
and outcome of study. Moreover, in this survey has been conducted by scholar only on 5
economists due to having limited time frame. However, with the aim to overcome such limitation
to a great extent global data in relation to exchange rate, institutional investment and exchange
rate been gathered by investigator.
DATA ANALYSIS
Qualitative analysis
Theme 1. Does oil and gas sector faces issues of pricing
Does
oil and
gas
sector
faces
issues
of
Frequency
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pricing
Yes 3
No 2
On the basis of above table, it can be stated that oil and gas is facing a critical issue in
regard to pricing. It has been noticed that out of 5 respondents the 3 of them has stated that oil
and gas sector faces issues of pricing. In addition to this, it can be said that 2 of respondents are
not agreed with the statement. In order to improve the work conditions, effective monitoring of
pricing strategy is significant. It also allows to have continuous improvement in performance so
that goals and objectives can be accomplished effectively. . If company is having appropriate
understanding about further working in context to economic values then further issues can be
overcome. It has been noticed that any kind of changes in the transportation cost might increase
the overall cost. It causes the price disruption and impact the overall working of organisation.
Theme 2. By having application of new standards in context to operations so that cost can be
controlled
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