If OPEC oil reserves decrease, will oil prices rise or fall (explain)?

please help me i need this!!!!!!!!!!!!!If OPEC oil reserves decrease, will oil prices rise or fall (explain)?
I don't know but here is what I think...





SUPPLY %26amp; DEMAND





If supply decreases and demand stays the same, the price would rise because there is less product to buy.





If supply decreases and demand goes down as well, the price would remain about the same.





If supply decreases and demand went up, then there would be a shortage of product and the price would go through the roof.

















g-day!If OPEC oil reserves decrease, will oil prices rise or fall (explain)?
oil prices would rise. All you need to do is draw a simple supply and demand graph. Demand on the left, which is downward sloping and supply on the right which is upward sloping. Where they cross is the equilibrium. The Y axis is Price, and the x axis is quantity. So when reserves decrease, there is less supply of oil, which means that you shift the supply curve to the left. So when supply is less, you have a new equilibrium at a new point on the demand curve, which is above the original equilibrium point . Therefore there is less of a demand for oil, and a higher price for oil.
It's just supply and demand. Supply will decrease, which will cause shortages and thus retailers will increase prices. Think of something that's really popular. When there isn't enough supply to meet the demand, the price of the item will rise in order to lower the demand of the product and maximize profit.
If you are the owner of a limited resource with a constant or increasing demand like like oil you maximize your income over time by selling a fraction each year, The fraction depends on the interest rate you can get on the money you receive from selling now verses the higher price you will get if you sell later. For example to make the idea concrete every year you might sell 1/20 of the amount you have left, so the supply on the market will fall over time, and therefore the price will increase
Americans have been so mislead by the hype that oil prices rise because OPEC reserves are low. Listen, anytime American oil companies make 124 MILLION in profits in ONE year there is no shortage of oil. There's just a whole lot of greedy CEOs who know Americans will pay whatever price being asked to fill their gas tanks.





Any idea how much 124 million in PROFITS is??? It's just a little more than I bring home in a year :-)