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.
To grasp world oil markets, we can look at supply and demand for WTI in the U.S. and Brent for the world as price and quality benchmarks.
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