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The Purpose of this assignment is to understand the relationship between Microeconomics and real business. We wanted to find out how did the demand and supply affect our market, and also find out the relationship between demand and supply. According to the article “World Facing Oil Pricing Uncertainty-Triple Digit Oil Predicted” BY Matthew Wild, We found out that the changing of the oil price has a close relationship with the market, and the market was affect by the demands and supplies around the world.

      Based on the research and the article by Matthew Wild, the price of oil will be hit ‘triple-digit” at the end of this year. US crude is currently up to around 82 dollars per barrel, “it could even higher as demand from the United States and other industrialized nations rebounds as their economics recover,” says Jeff Rubin, the writer and economist of Globe and Mail newspaper. According to this situation, the world’s energy minister and oil producers were trying to agree on ways to prevent oil price spiked in the future. The International Energy Forum meeting was held in Mexico on March 31, 2010, the main goal was to find a balance between Opec’s claim of spare oil capacity “exceeding six million barrels per day” and the claims of neutral strategic advisors PFC energy that oil will be “peaking between 2020-2025 around 95.00 mmb/d”. The majority of oil consuming nations were siding with Opec, however, nothing from the meeting had been indicated how this will be achieved, or at what price Opec should endeavour to maintain oil. There wasn’t too much time left for the Opec to decide the price of the oil, by the fourth quarter of this year, oil price will be back in triple-digit range, around 147 dollars per barrel, and it is time for Opec to decide at what point will they increase oil output to keep prices down.

      First of all, demand played an important role in the oil market. Oil demand is predicted to continue to increase despite the high price of...