Question
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)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
