Question 1Figure 1: Daily spot crude oil prices ( Jan 2020 to Dec 2021)dollars per barrel (S/b)Oct 26 $86/DS90S80BrentWest TexasS70S60Intermediate$50Jan 4. 2021$50/b$47/b$40S30S20$10AprJulOctJan2021JulOctAprJan2020Crude oil prices increased in 2021 as increasing COVID-19 vaccination rates, looseningpandemic-related restrictions, and a growing economy resulted in global petroleum demandrising faster than petroleum supply. The spot price of Brent crude oil, a global benchmark,started the year at $50 per barrel (b) and increased to a high of $86/b in late October beforedeclining in the final weeks of the year.Brent's 2021 annual average of $71/b is the highest in the past three years. The price ofWest Texas Intermediate (WTI) crude oil traced a similar pattern to Brent and averaged $3/bless than Brent in 2021.Source: Crude oil prices increased in 2021 as global crude oil demand outpaced supply - Today in Energy- U.S.Energy Information Administration (EIA)Required:a. Based on the above statement, discuss FOUR (4) factors that caused the fluctuation inthe equilibrium price of crude oil by using a separate demand and supply diagram.

Answered: Required: a. Based on the above…

Required: a. Based on the above statement, discuss FOUR (4) factors that caused the fluctuation in the equilibrium price of crude oil by using a separate demand and supply diagram.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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