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OPEC – Supply And Demand Essay, Research Paper

Lora Tomasello

7 / 17 / 00

Essay 1

The supply and demand issues dealing with the OPEC are that we are in great need of gasoline in the United States, since gas prices have soared in the past year. Saudi Arabia has a vast supply of stored oil. However, in the article it states that the Saudis cannot afford to appear as America?s lackeys. By this statement by using the word lackey Saudi Arabia does not want to look like they are supplying America with oil for nothing in return. We have a great demand for the oil here in the United States, and they (Saudi Arabia) have the supply. This is where the problem comes in.

I believe that there are both supply and demand issues. The supply and demand issues come about because the countries need to work together and they aren?t right now. Basically everybody is looking out for themselves and their own best interests. Some conspiracy theorists think that Iraq is going to take the supply situation to its advantage in the winter months by withholding its oil to win compromises. Even though this situation would be highly unlikely.

I believe that our government should step up and take action before the winter months come and the economy feels a great loss. Asia?s economy is already feeling the effects and they cannot reconstruct their economy after this downfall.

In conclusion to this supply and demand issue, Saudi Arabia should take action and release the 500,000 barrels of oil they promised, even though the price hasn?t gone down to $25.00 a barrel.


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