1 In July 2009, global oil prices hit record highs above US$140 a barrel, but within months, had fallen to close to US$100. The Organization of the Petroleum Exporting Countries (OPEC), the oil producer's cartel, responded to lower price by cutting the amount of oil that it produced, reducing the world supply. OPEC members had previously blamed rising prices on demand increases due to speculators and the weakening US dollar, which makes oil a more attractive investment. Demand for oil had been growing, because of economies such as China and India needed to fuel their rapid expansion. In addition, investors' worries a lot about the supply of oil. In the oil market, the perception of supply and demand also matters as well as the actual supply and demand. In view of the above statements answer the following questions: 1. Explain, using supply and demand analysis, why the price of oil might increase over time. 2. Explain how speculations influence the price of oil. 3. Changes in price of oil usually affects the value of the US dollar. Why is so? 4. Currently, because of Corona pandemic oil prices have been unstable. IF you are in the position of the Saudi oil minister, what do you propose to stabilize global oil prices both in the short and long runs