Changing oil supply and prices
I can explain how changing international relations and economic factors can affect oil supply and oil prices.
- Year 11
- Edexcel B
Changing oil supply and prices
I can explain how changing international relations and economic factors can affect oil supply and oil prices.
Lesson details
Key learning points
- Oil production and the price of oil change over time.
- Political factors, such as conflicts and changing diplomatic relations, affect oil supply and oil prices.
- Economic factors, such as recessions and booms and under and over supply, affect oil supply and oil prices.
Keywords
Supply - the amount of something (e.g. oil) that is available to buy
Demand - how much of something (e.g. oil) that people want to buy
Diplomatic relations - how well (or badly) countries get along with each other, which can affect trading relationships of supply and demand
Recession - a period when economies stop growing temporarily and people spend less
Common misconception
If demand for oil decreases then oil prices will always decrease too.
Although oil prices may decrease if demand decreases, oil-producing countries can increase the price of oil by reducing the amount of oil they supply. This requires oil-producing countries to work together to reduce supply.
Equipment
Content guidance
- Depiction or discussion of violence or suffering
Supervision
Adult supervision recommended
Licence
Lesson video
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