Journal opinion article Essay Example | Topics and Well Written Essays - 500 words - 3

Journal opinion article - Essay ExampleIn this interplay of a basic frugal concept pertaining to supply and demand, many individuals on a smaller scale are gaining from the benefits of inexpensive oil. Nevertheless, this might as well be a shipboard condition because of its to a greater extent encompassing implications.The instability of prices for this major commodity caused the creation of the Organization Of Petroleum Exporting Countries (OPEC) to control production and prices. The oil prices seem obedient on an individual level but this indicates an even bigger economic and political issue that entails the OPECs involvement. Yergin states that the decision not to reduce production greatly affects less affluent OPEC members compared to their more financially stable counterparts. Venezuela and Iran are among those countries suffering from the blow of plummeting oil prices. Member nations classified as developed countries are more resilient and have steady reserves to cushion th e fall. The OPEC members in big trouble are the have-notsthose with small financial reserves and high government budgets (Yergin para.9).another(prenominal) equally prevailing pointor in this issue is the Russia-Ukraine conflict. Notable is the fact that Russia is not a member of the OPEC and yet is the biggest producer of petroleum in the world. or so majority of its budget comes from its oil revenue and in a country largely reliant on imported consumer goods, this spells trouble. Russias falling currency equates to the fact that it has to pay more to get the goods it needs. Together with other sanctions imposed on the country due to the on-going conflict, Russia is experiencing major economic woes (Yergin para.11).On a microeconomic level, the affordable prices of oil mean an increase in the purchasing power of individuals and other enterprises. Fuel at a lower cost means value for consumers snarl prominently by vehicle owners who purchase it on a regular basis and manufacturer s who use it