In mid-2008, crude oil shocked energy markets as it reached an all-time High of $147/barrel (Bbl.) on the New York Mercantile Exchange. (See Figure 1 below.) Within four months, prices had sunk to $50 per barrel. Then, again in 2014, prices hit a High of about $100/Bbl in June only to fall to under $50/Bbl by December. How could this happen and what were the factors causing this level of price volatility? We will be exploring these questions in Lesson 2.
At the successful completion of this lesson, students should be able to:
- Recognize the various factors impacting supply & demand for natural gas & crude oil
- Research major supply/demand influences
- Global economy
- Domestic economy
- Energy commodity relationships
- Inventory and storage reports
- Assess the potential impact on market pricing for each factor researched
What is due for Lesson 2?
This lesson will take us one week to complete. The following items will be due Sunday at 11:59 p.m. Eastern Time.
- Lesson 2 Fundamental Factors Exercise
- Lesson 2 Quiz
If you have any questions, please post them to our General Course Questions discussion forum (not e-mail), located under Modules in Canvas. The TA and I will check that discussion forum daily to respond. While you are there, feel free to post your own responses if you, too, are able to help out a classmate.