Logistics of international trade: The oil market

Thèmes abordés

Oil market, Pestel analysis, transport, tankers, short term trade, long term trade

Résumé du document

Nowadays, the oil market can be considered the engine of the world's economy as each variation on the stock market can have social, political or diplomatic consequences. A world without oil is inconceivable today. We require oil for transport, industries etc. The global oil market is set to change by 2015. The oil giants of yesterday will be left behind by the emerging countries which have discovered their resources in crude oil and the possibility to exploit them.

Although Russia, Mexico and Brazil are currently far from being considered the heavyweights in the oil market today, they look poised to become the main OPEC suppliers by 2030.

If analyzing the market is important (part 1), we have to choose two different suppliers for a short or for a long term analysis.

Extraits

[...] And this consumption keeps on rising. On this market, two segments are present: we can make the difference between the passenger car ownership and the commercial vehicles. Title: Growth in oil demand in road transportation, 2007-2030 The number of car owners in developed countries is not saturated yet, but in long term it will become as you can see it on the chart (Growth in oil demand in road transportation, 2007-2030) that is why this market is not going to grow in the future. [...]

[...] The OPEC reference basket generally moved between $70 and almost $80/b. The highest point between 1st January of this year and today has been reached in August which the barril barely amounts to $86/d. To understand the price, the following chart Price of the crude oil will help: In fact we can see the evolution of the CIF cost of imported Crude Oil if we have chosen to import oil from Europe. We can see the pik in 2008. Titel: Price of the crude oil 4. [...]

[...] So the logistics will be mainly assumed by tankers. The oil price in Brazil by 2015 is announced to amounts to 58$/b which is cheaper than the Russian one. Titel: Pipeline Network in South America Conclusion Our purpose in this report is to have understood how the market of the oil is working, how we can buy oil in the world. If we are not able to say we are going to buy oil from that company, it is because the price of crude oil is fixed and based on the price that you can see on the NYMEX (New York Mercantile Exchange) et l'IPE (International Petroleum Exchange). [...]

[...] On top of that, the choice of country is non-exhaustive and the choice of countries is just subjective. That is why in appendice 1 we are going to see how oil is worked for sale. Bibliographie Document de Référence Total, rapport de gestion de l'année 2009, disponible sur www.total.com IEA Oil Market Report - 10 September 2010, disponible sur www.oilmarketreport.org DIW Berlin Weekly Report No. [...]

[...] In fact, South Asia will consume more and more whereas the Chinese Industry is willing to gradually decline the fuel consumption in order to favor the environmental energy in the future. However, China still needs fuel and the consumption will represent 40% of the world consumption in 2030. Title: Growth of Oil demand in Industry, 2007- The Oil supply Who can supply the oil consuming countries? We can remark two kind of oil supplier in the world: OPEC countries and Non-OPEC ones. We can barely see a strong increase in non-crude supply from both sources. [...]