Hala bakriECON 20117.10 Supply and demand assignment 1)This article is discussing the average price of a gallon of gas in California has increased to $6.08, a substantial 15% rise in just one month, with some stations in Los Angeles charging nearly $7.00 per gallon. Supply Constraints: California is experiencing supply constraints due to several factors, including disruptions in refinery capacity. Four of the state's oil refineries are operating at lower levels than usual due to maintenance and weather-related issues, reducing the supply of gasoline. The hike traces in part to a decision made in April by the alliance of countries known as OPEC+, led by Saudi Arabia and Russia, which opted to cut oil output by 1.2 million barrels per day starting in May. The move amounted to removing roughly 1% of oil from the global market. 2)ANALYSIS: OPECT: cut oil supply by 1.2 million barrels per day starting in May which means supply have decreased by 1 %, which made the price goes up to meet the market equilibrium.
Hala bakriECON 20117.10 Article link: Gasoline prices in California are up 80 cents in a month. Here's why. - ABC News (go.com) Title:Gasoline prices in California are up 80 cents in a month. Here is why, abc news. Author:Max Zahn
Uploaded by ProfessorWallabyMaster993 on coursehero.com