Factors affecting oil supply and prices Flashcards
(4 cards)
1
Q
Conflicts
A
Particularly in the Middle East, oil production can be disrupted. This causes a decrease in oil supply and increase in prices
2
Q
Diplomatic Relations
A
Oil prices may increase due to tensions between oil-producing countries eg. Saudi Arabia and Iran
3
Q
Recessions
A
Lower demand for oil because industrial activity and economic growth falls. This causes oil prices to decrease
4
Q
Economic Booms
A
Oil prices increase during periods of rapid economic growth due to increased consumption and demand
