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Title: Oil Prices To Fall Down

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Subject: Business
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Date: October 31, 2006
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Length: 3 / 652
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Refiners in other countries have also been increasing their ability to process low-grade crudes. Production at some new fields — like Saudi Arabia's Khursaniyah — will be of light oil. This marginal increase in the supply of crude oil will help reducing prices...

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This marginal increase in the supply of crude oil will help reducing prices. The technological advances have helped increase the supply of energy by alternate renewable sources. The production of substitutes of oil like ethanol has also increased. Figure 2: The results of technological advancements and production capacity increase on the supply curves of the substitutes Initially, the supply of substitutes curve was at S1, requiring a price of P1 for a quantity of Q1...

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