OMG LOOK AT THIS!

OIL HOVERS NEAR $115 RECORD HIGH!

Can you believe it? Omgosh just imagine the economic impacts this is going to have on our world!

Okayy I bet by now all of you are damn curious and simply dying to know why. Fret not, there's this! And being the nice guy I am, I shall break this down for you guys as well.

Main reasons for high oil prices:

1. Fears that the conflicts between the USA and Iran could interrupt oil supply
As we all know, when supply decreases, the supply curve shifts to the left thus price rises.

2. Increasing oil demand from China and India
China and India are the world's 2 fastest developing nations. Since development often requires the usage of large amounts of fuel, the demand oil increases. This is also due to the fact that China and India are very large countries and thus are able to significantly impact the oil prices. Thus, demand curve shifts to the right, and prices naturally go up.

Decreasing supply + Increasing demand = Significant increase in prices! :O

So now I'm sure everyone has a better understanding of the rising oil prices and also furthur strengthened your economic concepts right? And guess what?

It's all thanks to me. And Mr Foo cos he does wonderful tutorials (: