05-2.1

Read your textbook and other peer-reviewed publications, write a minimum of four (4) pages of high quality well written APA formatted standard about the following scenario.  Please keep in mind that this assignment is quantitative, therefore do not forget to use the figures and charts.

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 structure 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)