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

daybook opinion article - Essay ExampleIn this interplay of a basic economic concept pertaining to return and demand, many undivideds on a smaller scale are gaining from the benefits of affordable oil. Nevertheless, this might as intimately be a temporary condition because of its more encompassing implications.The instability of prices for this major commodity caused the world of the Organization Of Petroleum Exporting Countries (OPEC) to control production and prices. The oil prices seem good on an individual level but this indicates an even bigger economic and political issue that entails the OPECs involvement. Yergin states that the decision non to reduce production greatly affects less affluent OPEC members compared to their more financially stable counterparts. Venezuela and Iran are among those countries anguish from the blow of plummeting oil prices. Member nations classified as developed countries are more resilient and get steady militia to cushion the fall. The OPE C members in big trouble are the have-notsthose with small financial reserves and high government work outs (Yergin para.9).Another equally prevailing particularor 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. Almost 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 remember an increase in the purchasing power of individuals and other enterprises. Fuel at a lower constitute means value for consumers felt prominently by vehicle owners who purchase it on a weak basis and manufacturers who use i t