What is causing the rise in the price of oil, Macroeconomics

The rise in the price of oil can be traced to a easy factor, but there are various other contributing factors.

The easiest explanation is that the demand for oil is greater than the present production. When demand exceeds supply, price will enhance, as people are willing to pay more to make sure that they get their scarce resource (oil in this case).

Depending on your political views and knowledge of the situation, you may also believe that the production of oil is much lower than capacity due to certain middle-eastern countries know that America depends on oil imports more than other countries. An enhancing in oil prices will lead to a slightly weaker US economy.


Posted Date: 4/1/2013 5:43:42 AM | Location : United States

Related Discussions:- What is causing the rise in the price of oil, Assignment Help, Ask Question on What is causing the rise in the price of oil, Get Answer, Expert's Help, What is causing the rise in the price of oil Discussions

Write discussion on What is causing the rise in the price of oil
Your posts are moderated
Related Questions
If you take nations total income and subtract out private consumption government consumption what you will find?

Suppose that Lilistan has two types of citizens: low-income citizens (income = $20,000) and high-income citizens (income = $80,000). Interest income is currently taxed and each typ

The monetary system in any economy facilitates trade and allows people to trade more efficiently, as compared to a barter economy. In the United States, the monetary authority is t

Why does a production possibilities frontier with increasing opportunity costs have a bowed-out shape?   The curve is bowed-out because some resources are better suited for the

How can a country maintain equilibrium GDP with foreign trade?

Assume in country-A Central Bank cares only about keeping the price level stable & in country-B, its central bank cares only about keeping output & employment at their natural rate

Sustainability of Current Account Deficit: Theoretically speaking, a current account deficit can be sustained as long as the growth rate of national income exceeds the rate of

A sample of 60 mutual funds was taken and the mean return in the sample was 13% with a standard deviation of 6.9%. The return on a particular index of stocks (against which the mut

A bakery has fixed costs of $10 per day and variable costs of $1 per loaf. Its oven can handle up to 50 loaves a day and it is impossible to obtain additional capacity. Sketch the