The price of oil in international markets has dropped stunningly 60% in the past twelve months. Among the factors mentioned behind this drastic fall is the millions of barrels of oil produced in the US called shale oil and analyze:

• The market struc
• ture for oil industry
• The supply and demand for oil in that market structure
• The pricing of oil at the presence of OPEC and the role of Speculators
• Why shale oil is a substitute for oil and explain the news in regard to the Cross elasticity of demand. (Chapter 3)