Andrews first post

As usual, Saudi Arabia, the World’s oil producer of last resort, ramped up production at the begging of the year. However, after the series of crises that have been constituently occurring in Japan, Japanese demand for oil fell dramatically. For year, Japan has relied on Saudi Arabia for its oil. On a day to day basis, Japan’s average output of oil is 310,000 barrels day. According to many, Saudi Arabia had a rough estimate of 9 million barrels by March. However, when the horrid quake and tsunami hit North Tokyo, the equation changed, cutting back on Japanese demand. This demand curve has forced Saudi Arabia oil tankers to look elsewhere. According to the I.E.A, estimates have simulated that the earthquake would cut second quarter demand by an estimate of 27000 barrels a day. Due to a cutback in the supply in Barrels, the price would have to be lowered. Recently, oil prices have been increasing due to the lost production in Libya, North Africa, and the Middle East. These effects are not only horrifying to Japan’s Economy, but the results are also devastating to Americans. Since last Tuesday, oil prices around the nation have suddenly risen. Beginning on Tuesday, oil prices rose to 108.89 dollars. According to many economists, the high price in crude oil could produce a viable problem in the United States. Reports of I.E.A agents have warned that there are real risks with such high prices. One Hundred dollar per barrels plus price environment will prove incompatible with the currency expected pace of the World wide Economy recovery according from I.E.A reports.