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QUESTION 4 Oilpricesclimbedabove$80(59)abarrelonTuesday,hittingtheirhighestlevelinthreeyearsasthepoundslumped.Brentcrude,theinternationalbenchmark,rosetoasmuchas$80.69ontheday,themostsinceOctober2018.PriceshavebeenrisingforsevenconsecutivedaysonthebackoftheenergycrisisinEurope.Analystsbelievethatoilpriceswillcontinuetoriseamidsurgingdemandandtightsupplies.InvestmentbankGoldmanSachssaidBrentcouldhit$90per barrelbytheendoftheyear,warningthatrisinginputcosts,highergaspricesandweakergrowthwerelikelytoweighonEuropeancorporateprofitgrowthfor2021. 4.1 Withtheaidofwelllabelleddiagrams,criticallydiscusshowsupplyshockcouldresultinhigherprices. (10marks) 4.2 Ahigh-stakesgameofoildiplomacypitsSaudiArabiaagainstlong-timeallyAbuDhabi.Andtheresultoftheirfightwillshapenotjustthepriceofoilforthenextyear,butthefutureoftheglobalenergyindustry.Discussoilcartel'sinfluenceontheoilpricemovementsgloballyandhowthataffectstheeconomyofnon-oilproducingcountries. (10marks)

QUESTION 4

Oilpricesclimbedabove$80(59)abarrelonTuesday,hittingtheirhighestlevelinthreeyearsasthepoundslumped.Brentcrude,theinternationalbenchmark,rosetoasmuchas$80.69ontheday,themostsinceOctober2018.PriceshavebeenrisingforsevenconsecutivedaysonthebackoftheenergycrisisinEurope.Analystsbelievethatoilpriceswillcontinuetoriseamidsurgingdemandandtightsupplies.InvestmentbankGoldmanSachssaidBrentcouldhit$90per

barrelbytheendoftheyear,warningthatrisinginputcosts,highergaspricesandweakergrowthwerelikelytoweighonEuropeancorporateprofitgrowthfor2021.

4.1

Withtheaidofwelllabelleddiagrams,criticallydiscusshowsupplyshockcouldresultinhigherprices.

(10marks)

4.2

Ahigh-stakesgameofoildiplomacypitsSaudiArabiaagainstlong-timeallyAbuDhabi.Andtheresultoftheirfightwillshapenotjustthepriceofoilforthenextyear,butthefutureoftheglobalenergyindustry.Discussoilcartel'sinfluenceontheoilpricemovementsgloballyandhowthataffectstheeconomyofnon-oilproducingcountries.

(10marks)

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