Included from the table also are reasons to which numerous analysis attributed adjust in crude oil prices. As the details presented within the table indicate, the price for West Texas Intermediate crude oil follows a pattern that commonly is similar to that of Brent crude oil, while the price for West Texas Intermediate crude tends to become greater than that for Brent crude.
The mean price for Brent crude oil over the 25-month period was $27.80/b, compared having a mean cost of $29.96/b for West Texas Intermediate crude. The table also means that the factors attributed by analysts for crude oil price behavior was a lot more often expected changes in crude oil provide than it was either (a) expected changes in demand or (b) actual supply and demand changes.
Table 1: Crude Oil Price Behavior ? March 2001 to April 2003 [Price = US$ per barrel] War related bad supply expectations As indicated in Graph 2, inside period previous to the 11 September 2001 terrorist attacks, aggregate demand for crude oil, though it was declining, remained high and caused the AD curve to intersect to SRAS curve for the right of the LRAS curve and the price for crude oil remained over the equilibrium price. Following 11 September, however, demand for crude oil dropped sharply; the AD curve shifted sharply towards left, causing the AD curve to interest in the SRAS curve well towards left with the LRAS curve, of the price dropping below the equilibrium price. 9. Oil costs a gas market factor. (2003, February 3). Oil and Gas Journal, 101(5), 5.
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