|
Oil Supply & Demand
|
Assumed Values
|
||
| Oil Price | Supply | Demand |
| 10 | 45 | 68 |
| 20 | 50 | 65 |
| 25 | 55 | 64 |
| 30 | 60 | 62 |
| 35 | 65 | 61 |
| 40 | 68 | 60 |
| 50 | 70 | 59 |
| 60 | 72 | 55 |
| 70 | 75 | 50 |
Short-term chart. That is, new incremental supply and demand,
but not major new supplies nor major new demands. The price that oil will
theoretically sell at is the price where supply just equals demand.
However in this example, the supply is limited by current production capacity and the demand falls only slowly as the price increases. Although $31 is where amount demanded = amount supplied, profits can be maximized at another point. See the next tab, Maximum Profit.
