How much did oil cost in 2008? Dynamics of value, types of prices, formation of value

The cost of a barrel of oil of marker varieties has a significant impact on the economy of the leading states and can be used as a political tool. The decline in prices had a negative impact on the economy of the Soviet Union, playing one of the decisive roles in the political crisis that took place in the late 1980s and provoked the collapse of the USSR. The fluctuations in the cost of a resource affect the state of the budget of modern Russia, the economy as a whole and the price of another important element of Russian exports - natural gas.

The cost of oil is often compared with the figures for 2008, when the global economic crisis caused a collapse in prices. At the same time, the historical maximum of value was fixed. How much did oil cost in 2008? The minimum value of the resource reached the next day after the Catholic Christmas, while the maximum price was fixed a few months earlier - on July 4th.

The dynamics of oil prices is an indicator reflecting many events in the political arena and influencing the world's leading economies. But before tracing the fluctuations in the cost of a resource, it is worthwhile to sort out the types of prices, the cost price, the order of formation of the final cost.

Types of oil prices: marker varieties of the resource

To simplify the trading process, it is customary to use several reference (marker or standard) grades of oil. The cost of most varieties of the resource directly or indirectly depends on market prices, formed on the following basic varieties:

• Dubai / Oman (as well as Oman Crude since 2007) - is sold mainly in Asian markets.
• Brent Crude Oil - mined on the coasts of Norway and Scotland, consists of several types of raw materials. The exemplary variety is the gold standard for determining the cost of oil in the markets of Europe and the OPEC countries. According to quotations for oil, Brent formed the price for the domestic brand Urals.
• West Texas Intermediate (also known under the acronym WTI) is Texas oil, the cost of which is formed when the resource is supplied to storage facilities in Oklahoma, USA.

The volumes of production of these types of oil are small in a comparative ratio, but they determine the cost of most supplies of other brands.

Cost of the resource per unit of volume

The dynamics of oil prices takes into account the final cost of the resource, which consists of the mark-up and cost price - the total monetary expression of the costs incurred by the company in the extraction of oil. The cost price consists of such components:

• The costs of production, taxes and other mandatory deductions (the fee is from five to ten dollars per barrel).
• The cost of searching for and developing oil fields (depending on the region, costs range from seven to forty dollars).
• Transportation costs (the factor is not always taken into account, but only as necessary).
• For offshore fields, which account for about thirty percent of the total world oil production, it may additionally require the withdrawal of the oil platform from service.

The cost price of oil production is estimated at an average of twenty-nine dollars per barrel. How much did oil cost in 2008? With a minimal drop in the cost of the resource, oil companies earned only $ 4 per barrel, while at the peak of the prices, the profit reached 100 dollars or more.

Formation of the final price of oil

The final oil prices (the table for comparison or the graph, as a rule, also displays the final cost) are formed under the influence of several factors. The current political and economic situation is taken into account, but the ratio of supply and demand remains the fundamental factor that determines the cost by 80-85%. Such a conclusion in the scientific work titled "Investigation of the peculiarities of the formation of oil prices ..." was done at INEI of the Russian Academy of Sciences.

So, let's consider what the price of oil was by years. The graph will help to demonstrate the situation clearly. Data are given from the second half of the nineteenth century to the year 2011. On the chart, by the way, the price of oil in 2008 is clearly visible - the drop easily differs.

The blue line shows the cost of the resource in United States dollars, the orange curve reflects the level of prices in dollars in 2015. Data prior to 1945 relate to the cost of oil in the US, until 1885 the Arabian Light brand was introduced, and after that - today's benchmark, Brent resource.

Growth of resource cost in the early 2000s

The price dynamics, which was agreed by the world experts, begins with the 2000s, when the cost of oil increased due to the war in Iraq, the growth in demand, the reduction in production by Indonesia, Britain and Mexico, and the depletion of reserves in the Gulf countries. The volatility of the situation in the Middle East caused the oil price to rise by ten dollars a day on June 6, 2008. By July 4, the value of the product reached almost $ 144 per barrel (143.95).

The global crisis and the collapse of 2008

How much did oil cost in 2008? The cost of the resource by December 26, 2008 reached almost thirty-four dollars per barrel. The low price of oil in 2008 lasted relatively short: since the summer of 2009, the cost began to increase again.

Stabilization of the price level after the recovery from the crisis

After the exit from the global financial crisis (by 2010), the level of oil prices stabilized. At that time, the price of the barrel was about seventy to eighty dollars. Growth was resumed because of the political crisis in Libya and the fire at the refinery in the US, then the price began to fall due to problems in the European Union.

The collapse of the oil market because of the excess of raw materials

In 2014, the price of Brent fell below ninety dollars per barrel. Demand for fuel fell, but at the same time an excessive supply arose. By early January 2015, the cost of oil has fallen significantly. The minimum reached $ 45.13 a barrel on the 13th of January. How much did oil cost in 2008 and 2015? This is quite comparable indicators. And the factors that caused the decline in prices are comparable - in both cases, the global economic situation had a decisive influence.

Stabilization and the next drop in value

A month after the fall in 2015, the cost of oil stabilized, but not for long. Quotations rushed down in the summer of 2016 due to the collapse of the stock market of China and the announcement of Iran's plans to increase oil exports after the lifting of sanctions. There was also news that the United States was soon going to put into operation new production capacities.