Seeing that barrels of crude oil are increasing expensive, we can ask if and how quickly our gasoline prices will respond.
Looking at a crude oil matchmaker, production, and consumption, we can simply explain the below zero April oil price plunge.
Perhaps it’s the perfect storm for crude oil prices. Grounded planes, consumer lockdowns, and skyrocketing unemployment all add up to less need for oil. Meanwhile, with the Saudis gushing crude, supply is soaring. So yes, when you combine less demand…
Illustrated by the impact of cheap oil, the natural resource curse hits countries that have disproportionately focused economic activity on one industry.
Gasoline prices rise faster than they fall because monopolistic competition provides retailers with some price control although their product is identical.