Title: Oil Is Making a Comeback Thanks to the Dollar FlexibilityWORD COUNT: 819STATEMENT: Oil prices have been unstable lately, for many different reasons, but it seems that they are about to recover and go up again.Content Body:Oil and gas are the most important resources today, whole worlds economy is being based on them, and so it is not a surprise that their prices have a great impact on financial situation all around the world. Countries with big oil and gas reserves gain huge profit, for example Arab states Dubai is becoming the major global trading and financial center in the whole world thanks to oil. But these reserves give greater political influence and better starting point in any kind of negotiations, and Russian strategy towards European Union is the best example for that statement. Other states, like US also depend on prices of oil. They need this resource to power up their economy, but also their military which makes them the leading force in the world. So you can imagine how much are all of these countries interested in fluctuation of oil prices on markets. Why did the price fall?The oil price is partly determined by actual supply and demand, and partly by expectation. Demand for energy is closely related to economic activity, which is now quite low because of increased efficiency and a growing switch away from oil to other fuels. Turmoil in Iraq and Libyatwo big oil producers with nearly 4m barrels a day combinedhas not affected their output. Same situation is with Iraq, although ISIL occupied many territories with oil fields, the production itself was not jeopardized. Also, America has become the worlds largest oil producer, though it does not export crude oil, it now imports much less, creating a lot of spare supply. Dollar had become much stronger comparing to Euro, it is actually the biggest difference in the last eleven years, and this also affected the price of oil. Finally, the Saudis and their Gulf allies have decided not to sacrifice their own market share to restore the price, although some even believe that Saudi Arabia is pushing prices down to hit its regional rival, Iran, where it hurts most; the economy. There are many different reasons for current state of oil prices, but what is the perspective, is the situation to change soon?Oil prices will rise againAccording to experts, oil prices have grown because of many reasons. One of them is related to current political situation in the world. For instance, experts in the field state that a sudden move up can be related to the latest reports about the Islamic State terrorist group which is heading closer and closer to oil fields in Iraq. It has been stated that this criminal group could seriously jeopardize Iraqi oil production. Therefore, political instability, and especially the one in Arab world and in the countries rich in oil, can bring oil prices to grow sharply even in one day, just like it happened in January. Thus, if Islamic State terrorist group continues to approach oil fields, we can expect oil to grow even more. Another reason for oil rebounds comes from a drop in oil production. Namely, the main oil producers have been producing less oil and some of the announced that in 2015 the oil production dropped by 13%. Thus, if less oil is produced, it means that its price is going to grow and those who buy it will offer higher prices just to get what they need. Such ongoings could be also the policy of leading oil producers who want to bring back old prices to market. A huge role is being played by the U.S. companies who are willing to sacrifice marginal players in order to survive. Of course, this means that smaller companies will close up sell assets at fire-sale prices. But the most significant reason why oil prices will grow again is the fact that the nations that produce oil cannot afford low oil prices. Ever since the oil prices started dropping, oil-producing nations have also started burning their cash reserves. And for them, it is not enough just to produce oil and sell it at whatever prices because their economies require more income. So, if they do not get money from oil-production then their economies are heading towards recession which automatically means political instability. And indeed, many of those nations are today on the verge of destabilization. Therefore, we all must be aware that only those who have oil fields can possibly control oil prices. Sometimes, due to their own internal problems, the oil prices might drop for a while. But such a period lasts as long as the oil-producing nations have enough money reserves and as long as they are not in danger.Although oil prices fall from time to time, it is believed that a long term low prices of oil are impossible. Oil prices will only sometimes vary but as it seems right now, they can just rise in the future. And such a rise is a consequence to many political and economic reasons.Meta Description: Are oil prices about to go up again?IMAGE Middle Top: Hyperlink: