Oil: Betting on Prices After the Big Drop

Oil: Betting on Prices After the Big Drop Order Description   Introduction - About 300 words (25%) Summarize the case study addressing the following questions: Big drop in oil prices – No chances of recovery Anticipating the movement of oil prices – Prices would remain lower – reasons? Consequences of the drop of oil prices – in both short run and long run. Why would Saudi Arabia let the prices fall. Analysis - About 500 words (40%) Draw and explain graphs explaining at least 3 microeconomic concepts. Supply and demand showing fall in oil prices. Explain the reasons for the shifts. Supply and demand showing increase in oil prices. Explain the reasons for the shifts. Elasticity of oil demand and supply curves for conventional and unconventional oil Polices used by Saudi Arabia (OPEC) to prevent other firms from entering the market – Limit pricing or Predatory Pricing or both. Conclusion - About 250 words (20%) Summarize the analysis. What will happen to the prices in the future (2017 onwards). Argue both sides (prices falling and rising) giving reasons. References & Citation (15%) At least 5 reputable sources. Use the Harvard style of referencing. Guidelines: Research would be required for the analysis and the behaviour of future oil prices. The font size should be 12, lines should be double-spaced, all pages should be numbered at the bottom right of the page.