global oil market

As global commodities, oil and petroleum products (including gasoline and diesel) are subject to the price swings in free markets and can be dramatically influenced by perceptions about future supply and demand.

• Global demand for petroleum products has reached around 87 million barrels per day. ExxonMobil is the largest non-government owned company in the energy industry — yet we produce only about three percent of the world's oil and about two percent of the world's energy.
• Per the U.S. Department of Energy, crude oil prices averaged about $124 a barrel from April to June 2008, up about 70 percent over the average 2007 price of about $72 per barrel. Geopolitical tensions, growing worldwide demand, and a weakened dollar have contributed to the increase. Crude oil buyers, however, are able to purchase supplies they need.

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World oil consumption continues to grow, following seven consecutive years of rising prices.

• The U.S. Energy Information Administration preliminary data indicate that world oil consumption during the first half of 2008 rose by roughly 520,000 barrels per day compared to 2007. A 1.3 million barrel per day increase in non-OECD countries, led by China and the Middle East, more than offset a 760,000 barrel per day decline in OECD OECD (Organization for Economic Cooperation and Development) Member Countries (30) Australia, Austria, Belgium, Canada, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Korea, Luxembourg, Mexico, Netherlands, New Zealand, Norway, Poland, Portugal, Slovak Republic, Spain, Sweden, Switzerland, Turkey, United Kingdom, United States countries.

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The weakening of the dollar compared to other currencies has contributed to relatively higher oil prices in the United States in recent years.

• From January 2002 to June 2008, the price of Brent crude increased in nominal dollar terms by almost 600 percent, compared to less than 300 percent in euros, reflecting the weakness of the dollar. The dollar was worth 1.09 euros in 2000 and is now worth only about 0.64 euros.

The U.S. Energy Information Administration is estimating that global “surplus capacity” is now 1.2 million barrels per day, far less than the 10-year average of 2.9 million barrels per day. This factor contributes to market price volatility.

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