Business economics is field where economics deals with issues like management, expansion, corporate strategy. It includes the interactions between the corporation and the role of government. The factors affect a economy and its operations is open market forces is demand and supply. These two factors are the main driving forces of an economy. Demand is defined as the consumer's desire and willingness to pay for goods or services. While supply can be defined as the total amount of the goods and services available to consumers. The present report is based on the fall in oil prices and their impact on aggregate demand and supply on the economy.
Overview of oil industry is the heat on several others front well. The oil industry is divided into three components upstream, midstream, and downstream. The upstream finds natural gases and crude oil (Mollick, and Nguyen,2015 ). The upstream is also known as the exploration and production stream. From an individual perspective, the upstream market provides worlds the 7 million people daily their energy needs. As fuels can be considered the main sources of energy for the people.
The oil economic is full of booms and busts. The reason behind downturn in oil market is the strong U.S. Dollar in recent year. After recovering from the inflation the country is focusing more growth and want to competing with the other countries like china. The global commodity market is usually affected by the U.S. Dollar which puts the market into pressure to reduce the prices. Oversupply of oil is other factor that leads to oil prices down .Since in Europe due to inflation, the demand of the crude oil declined. Introduce the more efficient vehicles and other resources like solar energy has become more demanding and useful(arak Nath Sahu Bandopadhyay, and Mondal, 2014 ). China's economy may be worse in the coming year since china is largest import In oil production this hit the demand of the oil on global level. in oil this hit the demand of the oil in global level.
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The Iran nuclear deal, in this deal the global powers is redesigning the framework of Iran's nuclear facilities. Investor fear it will add more oversupply to world. Markets reacted on this news and prices decline more.
In recent years the prices of crude oil is reduces. From a geopolitical perspective larger part of oil exporting from the middle east to another region like North America, Europe and far to East. The exporter countries want to expand their business while importer countries want to minimize their depend on fuel and improve their trade balances. The economic performance of UK is not goods since the country is facing major crises like inflation and instability in political area. and want to(Tawadros, 2013. ) . The services sector is likely to growth in recent years but the manufacturing sector need to boost up. To fall oil prices of is good sign country is net importer after introducing the renewable energy projects. It seems like fall in the oil prices will bring some economic growth in country and helps the country to grow and overcome from the inflation.