9. Over the 2020-2021 years, crude oil prices increased dramatically, by almost 100% in just a...

Transcribed Image Text:

9. Over the 2020-2021 years, crude oil prices increased dramatically, by almost 100% in just a few months, while quantities have also increased. How many of the following could be consistent with this observation? Please note if an outcome is ambiguous, then all outcomes. are consistent. For instance, if given shifts cause prices to definitely decrease and quantities to be ambiguous, then prices dropping and quantities also dropping is a possible outcome. Assume a perfectly competitive market. World liquid fuels production and consumption balance million barrels per day 105 100 95 90 Last 12 Months 85 $80.00 80 $68.95 $57.90 $46.84 $35.79 ASON DJ F M A M J world production world consumption forecast 11 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 864202T 2016 2017 2018 2019 implied stock_build implied stock draw 2020 2021 Source: U.S. Energy Information Administration, Short-Term Energy Outlook, June 2021 Supply shifts out, demand shifts out Supply shifts out, demand shifts in Supply shifts in, demand shifts out Supply shifts in, demand shifts in. 2022 eia 9. Over the 2020-2021 years, crude oil prices increased dramatically, by almost 100% in just a few months, while quantities have also increased. How many of the following could be consistent with this observation? Please note if an outcome is ambiguous, then all outcomes. are consistent. For instance, if given shifts cause prices to definitely decrease and quantities to be ambiguous, then prices dropping and quantities also dropping is a possible outcome. Assume a perfectly competitive market. World liquid fuels production and consumption balance million barrels per day 105 100 95 90 Last 12 Months 85 $80.00 80 $68.95 $57.90 $46.84 $35.79 ASON DJ F M A M J world production world consumption forecast 11 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 864202T 2016 2017 2018 2019 implied stock_build implied stock draw 2020 2021 Source: U.S. Energy Information Administration, Short-Term Energy Outlook, June 2021 Supply shifts out, demand shifts out Supply shifts out, demand shifts in Supply shifts in, demand shifts out Supply shifts in, demand shifts in. 2022 eia