FRED 120 Barrel 115 110 - Crude Oil Prices: West Texas Intermediate (WTI)-Cushing, Oklahoma

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The chart below shows the price of oil ($ per barrel) between Feb 22 and Mar 7, 2022.
FRED
- Crude Oil Prices: West Texas Intermediate (Wm) - Cushing, Oklahoma
120
115
110
105
100
95
2022-00-22
2022-02-24
2022-02-26
2002-02-28
2002-03-02
2022-03-04
2022-03-06
Part (a) Explain the qualitative shift between February 22 and March 7 using standard supply
and demand analysis.
Part (b) The following table shows oil production in 2020 of the top-ten oil-producing countries.
For reference: Total world oil production in 2020 was approximately 76,000,000 barrels
(bbl)/day.
Oil production
Country
2020 (bbl/day)l1)
United States
11,307,560
2
Russia
9,865,495
3
Saudi Arabia (OPEC)
9,264,921
4 11 Canada
4,201,101
5
Iraq (OPEC)
4,102,311
| China
3,888,989
6
United Arab Emirates (OPEC)
3,138,249
7
8
| Brazil
2,939,950
9
Iran (OPEC)
2,665,809
10
Kuwait (OPEC)
2,625,145
What is the approximate magnitude of the price change displayed in part (a)? Explain how this
price change is quantitively consistent with the information in the table above.
Dollars per Barrel
Transcribed Image Text:The chart below shows the price of oil ($ per barrel) between Feb 22 and Mar 7, 2022. FRED - Crude Oil Prices: West Texas Intermediate (Wm) - Cushing, Oklahoma 120 115 110 105 100 95 2022-00-22 2022-02-24 2022-02-26 2002-02-28 2002-03-02 2022-03-04 2022-03-06 Part (a) Explain the qualitative shift between February 22 and March 7 using standard supply and demand analysis. Part (b) The following table shows oil production in 2020 of the top-ten oil-producing countries. For reference: Total world oil production in 2020 was approximately 76,000,000 barrels (bbl)/day. Oil production Country 2020 (bbl/day)l1) United States 11,307,560 2 Russia 9,865,495 3 Saudi Arabia (OPEC) 9,264,921 4 11 Canada 4,201,101 5 Iraq (OPEC) 4,102,311 | China 3,888,989 6 United Arab Emirates (OPEC) 3,138,249 7 8 | Brazil 2,939,950 9 Iran (OPEC) 2,665,809 10 Kuwait (OPEC) 2,625,145 What is the approximate magnitude of the price change displayed in part (a)? Explain how this price change is quantitively consistent with the information in the table above. Dollars per Barrel
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