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Supply and Demand

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Principles of Microeconomics 202
Seminar 1 Current Event: Chapter 3 (Supply & Demand)
September 28, 2013

Global Oil Supply and Demand
Online Article By, Kirby Brown, For the Deseret News
Published: Monday, Feb. 25 2013 5:44 p.m. MST
Global Oil supply and demand is driving gas prices in 2013. He was speaking of how when the price of oil fluctuates, the price of gasoline prices at the pump will also fluctuate. Given the numerous factors affecting global supply and demand for oil, the price of gasoline should be expected to continue to rise (deseretnews.com/2013).
The Organization of the Petroleum Exporting Countries currently consists of 12 countries. Saudi Arabia, with oil production of approximately 8.8 million barrels per day, is the leading oil-producing country in OPEC. OPEC was initially formed in September 1960 and is currently headquartered in Vienna, Austria (deseretnews.com/2013).
Global supply and demand for oil is significantly correlated with the retail price of gasoline in the U.S. and in other oil-importing countries. Non-OPEC oil production was reported to be just below 53 million barrels per day in 2012. The year 2013’s oil production by these same countries is currently estimated to total approximately 54 million barrels per day (deseretnews.com/2013).
Oil production in the U.S. is forecast to increase by about 500,000 barrels per day to total about 10.5 million barrels per day in 2013. Ongoing development of oil production capacity linked to shale formations which is a fissile rock that is formed by the consolidation of clay, mud, or silt, has a finely stratified or laminated structure, and is composed of minerals essentially unaltered and is expected to be the primary driver of increased U.S. oil production in 2013 (deseretnews.com/2013).
In 2012, the OPEC countries produced an average of 32.4 million barrels per day, according to their

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