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jessicaa2350
jessicaa2350
18.02.2021 • 
Business

In early 2008, the price of oil on the world market increased, hitting a peak of about $140 per barrel in July 2008. In the second half of 2008, the price of oil declined, ending the year at just over $40 per barrel. For each of the following scenarios, illustrate graphically how the exogenous event contributed to a rise or decline in the price of oil in 2008: a. A booming economy in China raised the global demand for oil to record levels in 2008. b. As a result of the financial crisis of 2008, the United States and other developed economies plunged into a severe recession in the latter half of 2008. c. Reduced sectarian violence in Iraq in 2008 enabled Iraq to increase its oil production capacity.

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