Q1.Read your textbook and other peer-reviewed publications, write a minimum of four (4) pages of
high quality well written APA formatted standard about the following scenario. Please keep in
mind that this assignment is quantitative, therefore do not forget to use the figures and charts.
Price of oil in international markets has dropped stunningly 60% in the past twelve months.
Among the factors mentioned behind this drastic fall is the millions of barrels of oil
produced in the US called shale oil.” and analyze:
● The market structure for oil industry
● The supply and demand for oil in that market structure
● The pricing of oil at the presence of OPEC and the role of Speculators
● Why shale oil is a substitute for oil and explain the news in regard to the Cross
elasticity of demand.
The oil industry is used to the highs and lows, and the COVID-19 pandemic has added to the problem by placing the survival of many players at risk. The decline in petroleum demand is a warning the market should ready itself for transformation. With the oil demand lower than the supply, OPEC and speculators are collaborating to increase oil prices during these trying times. The price of traditional oil will not change adversely because shale oil is not a direct substitute for this product.