| |
|
|
What happened to oil prices in the past decade?
From 1998 to 2003, prices have fluctuated as OPEC established new quotas and prices, but the general trend was a slow increase in prices as world oil demand rose. On March 19, 2003 when the U.S. entered Iraq, U.S. and Asian demand for oil was high and this coupled with the decreased production in Iraq and Venezuela caused the capacity of excess oil to decline. In 2002, excess oil was 6 million barrels per day and by 2003, it dropped to below 2 million barrels. During 2004-2005, excess oil remained less than 1 million barrels a day, an amount that cannot cover shortages if an OPEC producer's supply is interrupted or reduced. Thus, the reason why oil prices have risen to above $40 a barrel is due to the increased world oil consumption of over 80 million barrels a day combined with the reduced oil production capabilities of many nations.
Annual Average Crude Oil Prices ($/barrel), Average Nominal Price:
1995-2005:
Image: JPG
Excel File: XLS
|
Annual Average Crude Oil Prices ($/barrel), 2005 Inflation Adjusted:
1995-2005:
Image: JPG
Excel File: XLS
|
Sources:
Williams, James. 2005. "Oil Price History and Analysis". WTRG Economics.
|
|
|
|
