A news story from 2017 about the oil market stated, “crude oil prices fell … in part [due to] renewed concerns about the global supply glut.”
a. What does the article mean by a “glut”? What does a glut imply about the quantity demanded of oil relative to the quantity supplied?
b. What would be the effect of the glut on oil prices?
c. Briefly explain what would make the glut start to shrink.