Economic | Analysis of an economic article using micro economic theory


Layout of Student’s Assignment:
1. Cover Sheet (with appropriate identifying details)
2. Introduction (including economic concepts/theories to be applied)
3. Analysis (application of theory to article, including well-labelled diagrams)
4. Conclusions (refer to marking rubric)
5. References (use Chicago style)
6. Main Article Copy {for hardcopy only} – showing date and source
Visit the Bb site for some notes on preparing the assignment. But you can always check with your local tutor about planning and preparing your
assignment. The essay-assignment is worth a value of 20. As a rough guide, the score is out of 60 divided by 3, and is allocated as follows:
Introduction (summary of key issues in article) = 5
Outline of theory from course relevant to article = 10
Application of theory to article (i.e. range and depth of your analysis) = 20
Drawing of diagrams and use of data = 5
Evidence and quality of research = 10
*Conclusions (i.e. recommendations/implications) = 10
TOTAL = 60
* = Conclusions are not simply a summary of what has already been said for which there are NO marks. For instance, you must show who has gained, who has lost
(or who is worse off), changes likely to occur in short run and in long run, deal with issues such as should the government intervene and if so how? (or if not, why not?),
will there be any permanent changes? or will market return to the previous equilibrium? … or any other relevant (policy?) aspects.


In the recent past, the oil industry has witnessed difficult times with oil prices falling drastically. Although the industry is recovering, it is important to analyze the industry to understand the economic perspectives of the situation. An article appearing on Wall Street Journal titled ‘Global Oil Demand Closing in on Supply, Executives Say’ by McFarlane and Hsu written on 7th September, 2016 gives the true picture of the industry. According to the article the chief executives of the leading oil companies such as BP, IEA, among others are optimistic that the the market will stabilize. The article says that the demand for oil will rise in the near future. It also argues that the prices will go up and oil companies are contemplating on new ventures. This paper will analyze the article using the demand and supply and consumer surplus concepts.