Explain why the price of oil increased so rapidly

Assignment Help Econometrics

Reference no: EM13236781

When Iraq invaded Kuwait in 1990, the market price of crude petroleum jumped from $21.54 per barrel to $30.50 per barrel - an increase of almost 42 percent. Your boss is puzzled, because the price increase actually occurred before there was a physical reduction in the current amount of oil available for sale.

a. Explain why the price of oil increased so rapidly.

b. One year after the invasion, the price of oil fell to $21.32 per barrel, its prewar level. Explain why

Reference no: EM13236781

Questions Cloud

Why the postal service is seeking a rate increase : In 2009, the US Postal Service increased first-class postage rates from 42 cents to 44 cents. The service had been losing money. One of the reasons is increased competition from companies such as United Parcel Service

Calculate reorder point and achieved fill rate in policy : Purchasing manger is currently reordering whenever the inventory on hand is equal to twice as much as the safety stock level. Calculate the reorder point and achieved fill rate in this policy.

Find the magnitude of a and b : Vector A points in the negative x direction. Vector B points at an angle of 60 above the positive x axis, Given A+B+C=0, find the magnitude of A and B

Explain solution of magnesium chloride : Will a precipitate of Mg(OH)2 form when 25 mL of 0.010 M NaOH is combined with 75 mL of a 0.10M Solution of magnesium chloride

Explain why the price of oil increased so rapidly : When Iraq invaded Kuwait in 1990, the market price of crude petroleum jumped from $21.54 per barrel to $30.50 per barrel - an increase of almost 42 percent. Your boss is puzzled, because the price increase actually occurred

Illustrate the effect of this phenomenon on the world market : "Some economists worry that the aging populations of industrial countries are going to start running down their savings just when the investment appetite of emerging economies is growing" (The Economist, May 6, 1995)

Find expected backorder level and the ordering quantity : Find expected backorder level and the ordering quantity and to preserve the same service level, what order quantity would allow the company to carry no safety stock?

Compute the molar solubility of silver thiocyanate : Calculate the molar solubility of silver thiocyanate, AgSCN, in pure water and in water containing 0.010 M NaSCN.

Explain the solubility of silver iodide in pure water : Estimate the solubility of silver iodide in pure water at 25 degrees Celsius (a) in moles per liter and (b) in grams per liter.

User Account

All Pages