Reflection Assignment Example | Topics and Well Written Essays - 250 words

Reflection - Assignment Example The supply is higher than the demand due to the release of past stockpiles by the energy companies that expected prices to go higher over the years while ignoring the price decrease. In normal circumstances, the prices fall resulting in a decline in supply and an increase in demand. However, the prices of oil declined, and demand decreased while supply increased. The predictions by the government for a further decline in prices have resulted in the maintenance of the equilibrium demand by customers expecting the prices to decrease further. Energy companies want to release as much oil and its product at the current price to avoid doing so when the prices decrease further. At the moment, the forecast for future price decreases is influencing the behavior of the supply and demand of oil prices. The steady and firm dollar has also affected the demand for oil. Oil prices get measured in dollar terms, and the currency has been stable making the decrease in prices ineffective in most countries where the dollar rates supersede the change. The increased supply has also happened due to the change in technology that allows oil companies access supplies in the trapped shale-oil