Wednesday, April 28, 2010

Show the short-run impact of this oil price shock by dragging the curve to the appropriate position.?

The graph below shows the short-run aggregate supply curve for the United States. Suppose Iran, the world's second largest oil exporter, severely curtails oil production -- leading to a sharp increase in oil prices. Show the short-run impact of this oil price shock by dragging the curve to the appropriate position.Show the short-run impact of this oil price shock by dragging the curve to the appropriate position.?
drag supply curve up or left.

How do the performance of the stock market and the oil price affect the M&A market?

The stock market typically performs in cycles and oil (just like all commodities) rise in the late stages of an expanding economy. Mergers and Acquisitions typically happen when the markets are performing very well. So the stock market and oil could be rising with strong Mergers and Acquisitions. But much more likely (and in my option this is what is going on now) would be that the market performs strong, oil is weak and M%26amp;A are strong. However, it really depends upon the timing in the market cycle.

What is the reason for oil price hike?

when will its cost come back to normal?why is that the price of oil has increased?What is the reason for oil price hike?
The main reason that the oil price is hiking because dollars value is falling every day. As we know America is the main provider of oil globally and is trying to keep dollars value using oil. And that because Europe is using oil in grate level is trying to sold this product in a price that will lower euros priceWhat is the reason for oil price hike?
The reason for the higher price of oil is the increased demand for oil in the global market. Developing countries like China and India are starting to demand more oil which drives up prices.





Will prices go back to normal? Only if demand for oil fall or supply of oil produced increases. It's unlikely that demand will fall and the primary supply of oil is primarily regulated by OPEC. So it's unlikely.
I think one of the major reasons is 'peak oil'. This is the term for the beginning of the end of the world's oil supply. They are just running out of plentiful sources these days. Couple that with wanton greed, increased demand from India and China like previously mentioned, and presto. I doubt you can blame the Iraq war. That is only one source.





Im sure when the big companies have been satisfied with enough profit, you will see the 'miraculous' introduction of alternative fuel cars by governments everywhere!
Conventional wisdom is supply and demand.





The US used to be the major consumer of oil. Now that other global economies have become more affluent, the US is no longer the major consumer. Both China and India are major consumers of petroleum, therefore the demand is higher.





Gasoline has been over $8/gallon in Europe for over a year. The US is catching up to what the rest of the western world has been paying for gasoline for a long time.
Iraq, which George Bush decided would be a good idea to invade, supplied a fair amount of oil, and the terrorists and militants decided to blow up the oil pumps/extractors.
Suppy and Demand. Hate to tell you, but welcome to the new ';Normal';.





More people worldwide want it, and more of it. When people stop wanting it, the price will have to come down.
the reason why the price of oil has increased is because the world is going dry with oil so the less we have the more it cost
This is the new normal , it's all about greed...
  • mascara
  • Crude oil price, why do rumors of wars change it dramatically?

    In the Middle East, why is it that when there is a rumor (not an actual) of war, as in the tension between the Brits and Iran today over the 15 captured marines and soldiers, oil prices spike even if there is no real war and no actual disruption to production or delivery? Supply remains the same: demand remains steady, and yet prices skyrocket! Finally, once an issue is resolved, the prices remain high for an extended period, while the first hint of a war or tension, prices jump quickly- why is this?





    Serious answers and conspiracy theories welcome! Thanks a million!Crude oil price, why do rumors of wars change it dramatically?
    one reason is that it takes so much more oil to run a military - aircraft - armour - troop transports - naval vessels. So if there is the possibility of war then the demand will go up from the warring states and those that support them. That effects the price on the market,





    another is that if the war is going to be in a country with oil refinerys and oil wells then the supply lines of oil themselves may get hit or be targets. This increases the risk of loss and the price goes up.Crude oil price, why do rumors of wars change it dramatically?
    a great honour to have Einstein choose my answer as best. When the war may involve modern military such as the U. K or U.S then the prices will soar. If it were two African nations or South American nations then the prices would not increase as much. Report Abuse

    Imagine a clock. Everything that is part of it, is performing a specific function. And cannot do anything else, as long as it is preserved as a part of this structure. In other words it is SET this way, because someone (as if it were) has decided so. It is likewise with the wars and the rumours of wars.
    speculation, buy on the rumor sell on the news.
    Seems to me the bottom feeders and blood suckers willuse any excuse to sqeeze you.





    Sounds like a dag gone mafia to me.

    Should I lock in my fuel oil prices this year? Do you think the current price of no2 fuel oil will go down?

    Do you think the price will drop reasonablely as we reach summer here in the northeast?Should I lock in my fuel oil prices this year? Do you think the current price of no2 fuel oil will go down?
    Too many speculators in the market for any appreciable price decline.

    Will there be another crude oil price hike?

    As the whole world knows; that the previous crude oil price hike is because of investors buying the commodity due to weakening US structure %26amp; Bush policies (invading Iraq %26amp; meddling with Iran). At one point, it rose to $145 per barrel. Now, the bubble bursts and the current price is below $55 per barrel. Will there be a second bubble in the near future?Will there be another crude oil price hike?
    There will be an increase in price in the future. In the next six months we will price anywhere between $80.00 to $100.00 a barrel. Will there be another crude oil price hike?
    I usually have strong opinions, but I think this one is hard to call. It will probably live or die with the US economy. If Obama can snap us out of our sinking feeling, oil could rise. But it seems more likely that he will try traditional democratic economics and drive us into a major depression. Things like his oil windfall tax will make it even worse.
    Yes. And when it comes it will be a ';surprise'; like all the other ones. Let's face it. The US is an energy pig. We've gotten away with it because we were the only one, or at least the only big one. Now China, India and Brazil are developing into huge economies and want energy.
    lol

    Crude oil price reduced to 50$ but why still indians pay for old 140$?

    Price of crude oil reduces to 50 from 140.


    But still our governments are not ready to reduce the price of petrol or gas.


    More fun no opposition party is raising a voice?


    Because they have played batter drama before.


    But for simple reasons they will create violence.What we can understand from this?


    Who can help us?


    Crude oil price reduced to 50$ but why still indians pay for old 140$?
    The Govt is still paying subsidy with the new price level, of course at $150-level the subsidy burden was unusually high. Lets give our Govt a chance to recover from the huge subsidy burden.Crude oil price reduced to 50$ but why still indians pay for old 140$?
    Because the successive Indian Governments did not increase the price of Petroleum products when they were selling at from about $60 to 150 and kept the price constant for the fear of becoming unpopular. Both NDA and UPA were responsible for this anomaly and hence the Government and oil marketing companies had to lose heavily because of this. Now when the price is reduced internationally these companies are still recuperating and adjusting the losses.





    Governments should not control the prices and should leave it to the companies as when price goes up people will automatically reduce the consumption and vice versa.





    You have given lot of price details and hence YOU should know the real facts also about the petroleum prices. Even today the oil marketing companies are loosing money in Gas and Kerosene sails.
    I feel, it would be better to raise this question to the Harward Univercity Economists of India (Yes, exactly, PM %26amp; FM of India). But, I can say, you will get the answer from them as, There is an Election in progress, and those needs to be finished by Election commission. Till then, they could not do anything.





    Ofcourse, this is obvious, but, immediately after that, EC will announce the General Public election for India.
    Indian Finance Minister %26amp; Pria Minstter are to quolifin


    for whats time whats do?


    if price crude rs. 100 up ove all part's and all members are say price incresses But why not all members say price decreasses?


    Iam Account officer


    My sujection to F.M. pls. Sir this is oill per lt. profit are adjusted %26amp; seteel gus grant and iam say to govt. pls. off all grants of gus.


    and no need decreass price But profit of crud are Same Fund vreated for every bachlor's are not give jod Or same salry for your living life.
    they are making the project to adjust the loss which accur in the past. and they are putting lot of taxes for refine.