Question 3: In the spring of 2020 oil prices took an unprecedented decline. On April 20th, the price of the benchmark West Texas Intermediate (WTI) futures contract fell below zero for the first time in its history. Using your supply and demand diagrams explain why oil prices have fallen. Be sure to include all the factors contributing to the fall. One hundred years of oily crude 2 Crude oil price, $ per barrel* OPEC+ spat amid covid-197 Arab spring 150 Iran-Iraq war begins Global financial crisis Iraq invades 120 Depression Arab oil embargo Kuwait dampens demand Asian 90 financial crisis 60 30 American shale boom 0 1920 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 2000 05 10 15 207 Sources: Goldman Sachs; Datastream from Refinitiv; US Bureau of Labour Statistics; Bloomberg *Constant Feb 2020 $ At March 31st The Economist