Crude oil is considered a non-renewable energy source because it was created when the remains of algae were heated under the pressure of the earth for millions of years. . The long-term process makes it very limited to find, as it is not as abundant as other fuel sources. The crude oil market continues to be in high demand among investors and consumers. Therefore, people always find ways to secure the supply of crude oil, especially in countries that produce and export crude oil. The relationship between crude oil and the resulting economic outlook is very close. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the original essay Over the past few decades, the price of oil has been increasing gradually. The global oil supply economy never stagnates due to several factors. One of them concerns the imbalance between crude oil production and the still rapid demand in the market itself. The world is experiencing overpopulation, which creates increased demand for basic products (food, energy resources, etc.). The growth rate of crude oil production is decreasing worryingly from time to time. According to Kumhof and Muir (2012), the crisis in the oil economy is due to a negative oil supply shock. Two important assumptions can be drawn from this statement: the trend growth rate of global oil production is reduced, and a conventional macroeconomic model, in which oil enters into the production and consumption technologies of the economy, is adequate in conditions of increasing oil shortage. To learn more about policy, risk analysis and scenario analysis, Global Integrated Monetary and Fiscal Model (GIMF), a multi-regional dynamic general equilibrium model, is used. However, research by Kumhof and Muir (2012) reveals that, under both assumptions, oil scarcity does not pose a major constraint to global growth. Furthermore, it does not contribute significantly to significantly reducing the current imbalance in the oil economy. An increasing elasticity scenario occurs if the price of oil is doubled or tripled relative to the permanent real price. Raising prices will actually lead to a narrowing of the gap between the growth effects and the current imbalance in the oil economy, which contrasts with the initial belief that this would destroy the balance of the economy. The price of oil changes from time to time, and whoever is The Organization of the Petroleum Exporting Countries (OPEC) is responsible for this. It is an intergovernmental organization bringing together 15 countries, including major oil exporting countries. OPEC has a remarkable impact on the price of oil. However, its ability to control the price of oil is quite limited in the long term. This is because all countries involved have different incentives compared to OPEC as a whole. This statement can be further explained by a situation in which the price of oil is set by OPEC but does not attract satisfaction or acceptance from OPEC countries. So they have the power to reduce the supply of oil to drive up the price of oil. However, this was not a wise move because they knew that by reducing supply they also had to reduce revenue. The most ideal situation they are trying to achieve is to increase the price of oil while increasing income. OPEC can also decide to increase or decreasedecrease the supply of oil, depending on the approval of OPEC countries. Ultimately, who controls the price of oil depends solely on the forces of supply and demand. Although OPEC has the power to control prices, this is always done in the short term and prices will only be affected temporarily. Usually, in common cases, the price set by OPEC is an average of the oil prices of a few countries, namely Algeria, Indonesia, Nigeria, Saudi Arabia, Dubai, Venezuela and Mexico . This average price will be constantly monitored by OPEC to study global oil market conditions. However, OPEC oil prices are generally lower than those of other countries due to the quality of the oil itself. OPEC countries produce oil with higher sulfur content, which will only lead to lower quality of the gasoline produced. By setting the price lower, it will be able to satisfy the satisfaction and needs of the consumer because the price corresponds to the quality of the oil. Due to fluctuations in crude oil prices, it is possible for investors to invest in crude oil futures. as it can help you gain or lose a substantial amount of money in a short period of time. There are two types of oil contracts that can be purchased by investors; futures contracts and spot contracts. As stated by Fabozzi (2004), futures contract is an agreement between two parties, who are a buyer and a seller, in which the buyer agrees to take delivery of something at a specified price at the end of the designated period. period of time and the seller agrees to make delivery of something at a specified price at the end of the designated period of time. In this case, it is specifically about the purchase and sale of a certain number of barrels of oil. Usually, they will liquidate their future holdings before taking delivery. Although there are a large number of futures contracts open at the same time, most trades will only be on the closest futures contract, also known as the most active contract. The price of the futures contract depends on the willingness of buyers to pay for the oil on a delivery date set at some point in the future. As the date is actually in the future rather than the present, it is not possible to guarantee that the price will reach the target price in the market. Usually, the price quoted will only be the price anticipated and targeted by the buyer of the oil. Another type of contract is spot contracts. This type of contract differs from the futures contract because the exchange of financial instruments is settled immediately. The price of the spot contract depends on the current market price of oil. Commodity contracts bought and sold on spot markets take effect immediately, as it is an immediate process. The process includes only the exchange of money, followed by acceptance of delivery of the goods by the buyer. In the case of oil, the demand for immediate versus future delivery is low, due to a large part of the logistics of transporting oil to users. However, investors normally do not take delivery at all, which is why spot contracts are less enforced than futures contracts. Industry 4.0 is called the digital transformation of production or manufacturing based industries driven by connected technologies. Industry 4.0 introduces the so-called “smart factory” in which cyber-physical systems monitor the physical progress of the factory in real time and are capable of making decentralized decisions. Other terminology includes smart manufacturing..