新西兰assignment代写:美国石油降价

In the middle of last year the oil prices crashed due to the fact that the U.S shale oil supply surged and the Chinese demand for the commodity fell. Owing to this, there was a huge oversupply in the market. Recently, many oil companies have very big debts such that they can not in any way react to a drop in oil price by cutting the supply as they would do in the past. This is very essential since the consumer will always be assured of getting oil even with the reduced prices. However, it is at the time that the price began to drop that a significant proportion supply surge was noticed. This can be best explained that it is at this time that the producers noticed the falling of the prices and they were doing it in response to it.This is good news for the average consumer who does not necessarily have to suffer where there is strangle within the big oil companies. In the U.S, producers are a bit loosened the burden of servicing their debt since they can replace with the share capital. (Hirst, 2015).