Answer Happy

As we know, petrol is made from oil. Australia’s own production
of oil is not sufficient for the needs of the domestic market.
Consequently, much of the petrol is either imported from other
countries or is produced domestically at the two domestic oil
refineries in Geelong, VIC and Lytton, QLD, using the oil sourced
from the global oil market. Consequently, to understand the petrol
market we need to look into the global market for oil first. For
the purposes of this question, we will assume that the global oil
market is competitive.
Use the demand and supply model to explain how the price of oil
is determined in the global market. Briefly discuss the factors
that influence the supply of oil (supply shifters) and the factors
that influence the demand for oil (demand shifters). Which of these
factors do you think are responsible for the recent price dynamics
in the oil market? Illustrate your answer on a graph, including all
relevant supply and/or demand shifts and the corresponding changes
in the equilibrium price and quantity.