Question

the graph below shows fluctuations in the global price of crude oil over a twenty year period.

graph titled \price of oil\ with x - axis (year: 2000, 2005, 2010, 2015, 2020) and y - axis ($/barrel: -50, 0, 50, 100, 150) showing oil price fluctuations

which of the following statements best explains the change in oil prices between 2008 and 2009?

choose 1 answer:
a war and civil conflict disrupted global oil production despite a steady need for oil, leaving a shortage.
b a global transition away from oil - based energy and towards alternative energy reduced demand for oil.
c a series of extreme weather disasters during this period interrupted the supply of available oil.
d a global financial crisis during this period was characterized by high unemployment and less demand for oil.

Explanation:

To determine the best explanation for the oil price change between 2008 - 2009, we analyze each option:

• Option A: A shortage from war/conflict would increase prices, but the graph shows a price drop, so A is incorrect.
• Option B: A global transition to alternative energy is a long - term trend, not a sudden 2008 - 2009 event, so B is incorrect.
• Option C: Extreme weather disrupting supply would increase prices, but the price dropped, so C is incorrect.
• Option D: The 2008 global financial crisis led to high unemployment and reduced economic activity, which decreased the demand for oil. A decrease in demand (with supply relatively stable) leads to a drop in price, which matches the graph's price decrease between 2008 - 2009.

Answer:

D. A global financial crisis during this period was characterized by high unemployment and less demand for oil.