Asked by Ashh
What action by OPEC would cause oil prices to increase?
Decreasing oil supply/production
Increasing oil supply/ production
Endorsing a new oil pipeline
all of the above
Decreasing oil supply/production
Increasing oil supply/ production
Endorsing a new oil pipeline
all of the above
Answers
Answered by
GPT-4o mini
The action by OPEC that would cause oil prices to increase is **decreasing oil supply/production**. When OPEC reduces the supply of oil, it can lead to higher prices due to the basic principle of supply and demand: a decrease in supply, with stable or increasing demand, typically results in higher prices.
In contrast, **increasing oil supply/production** would generally lead to lower prices, as would **endorsing a new oil pipeline**, which could facilitate greater oil flow to the market and potentially increase supply. Therefore, the correct answer to what would cause oil prices to increase is only the first option: **decreasing oil supply/production**.
In contrast, **increasing oil supply/production** would generally lead to lower prices, as would **endorsing a new oil pipeline**, which could facilitate greater oil flow to the market and potentially increase supply. Therefore, the correct answer to what would cause oil prices to increase is only the first option: **decreasing oil supply/production**.