Short-run oil prices | Supply, demand, and market equilibrium | Microeconomics | Khan Academy

Thinking about what moves oil prices

Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/microeconomics/elasticity-tutorial/price-elasticity-tutorial/v/price-elasticity-of-demand?utm_source=YT&utm_medium=Desc&utm_campaign=microeconomics

Missed the previous lesson? https://www.khanacademy.org/economics-finance-domain/microeconomics/supply-demand-equilibrium/oil-prices-tutorial/v/breakdown-of-gas-prices?utm_source=YT&utm_medium=Desc&utm_campaign=microeconomics

Microeconomics on Khan Academy: Topics covered in a traditional college level introductory microeconomics course

About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We’ve also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content.

For free. For everyone. Forever. #YouCanLearnAnything

Subscribe to Khan Academy’s Microeconomics channel: https://www.youtube.com/channel/UC_6zQ54DjQJdLodwsxAsdZg
Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
Video Rating: / 5

Concerns over excess oil supply weighing on oil prices

Gregory Zuckerman, special writer for The Wall Street Journal, on the outlook for oil prices.
Video Rating: / 5

20 thoughts on “Short-run oil prices | Supply, demand, and market equilibrium | Microeconomics | Khan Academy”

  1. It is most likely not going to affect the short term price of oil at all. It may affect the medium term price (5-8 year). Then again it depends on the type of alternate fuel solution.

    The reason is: Technology needs to be built to produce it alternate energy, and technology needs to be built to use it. Takes time to fund it. Then there is a transition period for people to be convinced to switch to alternative means. All this takes time beyond the short term.

    Reply
  2. in the below example I gave. The reason investors suddenly pull out is due to market psychology like sal said. This happens a LOT.

    Reply
  3. The sad truth is. If people make a habit of it to withdraw money and pay instead of paying by card.. it can actually drive down oil prices…

    Reply
  4. here is an example.
    – Investors speculate on a oil exploration + drilling company. Now they have funds to drill oil.

    – Investors suddenly decide to sell their investments in the company. Now they are under funded.

    – So to make up the needed money for drilling they will increase their crude oil price.

    – This in a chain reaction will will cause the consumer price of oil to raise.

    (this is a very simple example)

    Reply
  5. Sal – (at)khanacademy – A true genius you are. My two year old is a Saul. Great names. Thank you so much for your efforts. I am a social media strategist (at)paulbradleysmith and have started passing many of your videos to some very well educated people. You are truly changing the way people learn. May God bless you and your family for these efforts.

    Reply
  6. The crude oil price is function of the oil quality, cost on different steps, investment, and demand/supply.
    The price of gasoline has other influence. You can compare the prices on Europe with the price on U.S.A. Why this big differentce.
    The theory explained on the video, is right, but the real reasons are not disclosed from the speaker. He is very knowlage person, but the price of gasoline and dhe price of shares a company sell on the stock market are not related.
    See the oil shortage?

    Reply
  7. How is the upcoming increase in alternate fuel sources for automobiles going to hurt or help the volatility of the short term prices?

    Reply
  8. (at)GodDamnit7711 And why do other Western countries with much more extensive government involvement in health care have much lower health care costs and even better quality?

    Reply
  9. Might have been good if Obama had done that Keystone XL looking back now hmm? Oh I forgot a small group of enviornmentalists comes before the economy. But I might be wrong because Obama said so?

    Reply
  10. (at)KsantiMedia2 If you really think the new health care law is "nationalized HC" then you are badly mistaken. All it does is require those without HCI to buy it because part of the rapid rise in HC cost is folks w/o insurance getting sick & those w/insurance having to pay for it. And it finally sets regulations on insurance companies so they can't continue selling fraudulent policies, dropping people who are sick & blocking people w/pre-existing conditions. All HC is still in the private sector!

    Reply
  11. (at)Viracocha711 Okay, America is fucked up, Americans are stupid for not wanting nationalised healthcare and the profit incentive is not something that should ever be applied to healthcare. How's that?

    Reply

Leave a Reply to rizalATmarcos Cancel reply

4 × 2 =