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From the supply side of view, the OPEC is the main producer, being prepared to add or subtract production to balance demand. Moreover, Russia is another major producer of oil in the world. They usually produce more when demand more and subtract when demand reduce to control the price of oil. Anyway, speculator is another factor we have to consider in short run. From demand side of view, every country is trying to reduce the consumption on petroleum, the government use tax strategy to control the oil price. Further more, government strategic oil reserves have to be considered as a factor which causes oil supply shortage...
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Common topics in this essay:
- Price Makers And Price Takers
- The Advantages And Disadvantages Of Free Market Economy, Price Determination With Market Forces. And Government Intervention With Free Market Equilibrium Price And The More Suitable Model For The Sudan
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- Does vanity has a price?
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- Price Discrimination
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