Logistics and Statistics
Market Movements | Comparison | OPEC | Affects of Oil on the Potential Level of Output | Oil: Post 9/11
The Price of Crude Oil
The graph above demonstrates the steady, yet fluctuating, increase in the price of crude oil. Between September 2001 and September 2006, the monthly average price of a barrel of oil rose from $24.29 to $59.34. When looking at the graph one notices that the price has fluctuated continuously. The price reached a peak in the summer of 2006 and has been declining in the months since.
Percentage Change in the Price of Crude Oil
In order to calculate the percentage change in the price of crude oil, you need to use the same equation that you would normally use to calculate inflation. Since we already know the price of oil in September of 2001 and the price in September of 2006, we can simply plug the numbers into our equation and find the answer. The percentage change in the price of crude oil can then be compared to the inflation rate of the rest of the American economy. This is essential because by comparing the two, one can see that the normal market forces do not necessarily apply to the crude oil market.
Market Movements | Comparison | OPEC | Affects of Oil on the Potential Level of Output | Oil: Post 9/11
