Article Reviews on Demand and Supply.

Running head: ARTICLE REVIEWS ON DEMAND AND SUPPLY
Article Reviews on Demand and Supply
Name of the Student
Name of the University
Author Note

ARTICLE REVIEWS ON DEMAND AND SUPPLY
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Executive Summary
The objective of this recent study is to analyze the critical condition of the international oil
market. The outbreak of coronavirus has already hit the production of the world’s largest oil
producer: OPEC. Experiencing the devastating performance of the oil demand of thre
international market, OPEC has already revised down its projected oil growth in the next year.
Furthermore, the growing dispute with other oil producing countries triggers a great challenge to
OPEC.

ARTICLE REVIEWS ON DEMAND AND SUPPLY
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Table of Contents
Introduction......................................................................................................................................3
Outline of the theory........................................................................................................................3
Empirical analysis............................................................................................................................9
Conclusion.....................................................................................................................................10
Recommendations..........................................................................................................................10
Reference list.................................................................................................................................12

ARTICLE REVIEWS ON DEMAND AND SUPPLY
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Introduction
This paper emphasizes on a principle concept of the microeconomics, such as, demand
and supply analysis. The conceptual framework explains how pieces and quantities are
determined through collaborative actions of both sellers and consumers. Price simultaneously
determines the amount the consumer demands in response to the price charged by the seller. In
the view of private enterprise market economics, demand and supply analysis is considered as
the fundamental concerns for the production analysts. The model illustrates how price and
quantity get influenced by the external factors like, demand and supply shock. Market achieves
its equilibrium level through the negotiation between sellers and buyers. “OPEC’s revised supply
/ demand outlook for 2020”, the article is chosen to critically analyze the role of the supply and
demand study in the international oil market (Boslego 2020). Market analysts state that OPEC is
expecting a considerable fall in demand due to emerging economic uncertainty related to
coronavirus epidemic. It is assumed that oil demand will fall by 435,000 barrels per day for the
first quarter of 2020 as compared to the 1st quarter of 2019. Altogether it may leads to fall the
demand by 1.3% in a year which is highest ever after the global financial crisis 2008.
Outline of the theory
According to the report of the International Energy Agency, the deteriorating demand
condition will give downsize impact on the oil production. The data exhibits that average oil
production of the OPEC countries is expected to fall by 30 million b/d. This reflects the strong
impact of the diminishing oil demand of the international market. In terms of the economic
theory, demand depends on some major factors, such that, availability of substitute and
complementary goods, consumer’s choice and preferences (Weizhen 2020). As availability of oil
is limited, he demand for oil product is highly price elastic. This implies that a minor change in