Buy custom How oil price affect world economy
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| Topic: |
Business
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| Number of pages / Number of words: |
5 / 1222 |
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It requires additional refining capacity, of which there is a shortage. It will cost the producers large amount on the facilities to convert crude petroleum to petrol. The input price and extra capacity will lead to a higher cost of production and shift the supply curve left, meaning that supply same level of product, the price of the oil will be higher...
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The input price and extra capacity will lead to a higher cost of production and shift the supply curve left, meaning that supply same level of product, the price of the oil will be higher.
Furthermore, since the OPEC countries expected the oil price keep in high, they will not tries to produce as much oil as they can...
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