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Russia's economy is suffering from falling oil prices as oil revenue makes up about half of the state budget revenue, while the sanctions imposed by the West in response to Moscow's policy toward Ukraine have almost shut the global financial markets to Russian business. Since oil has the inelastic demands, the fall in price of it will proportionally change the quantity demanded, however if the Russian business decide that oil is not profitable business anymore, they might switch to its substitutes, or if the supply of oil significantly decreases during next few years because of the fall in price of it, the demand for oil might decrease as well and people will again consume its substitutes, such as wood or gas, in greater quantities. If low oil prices and Western sanctions persist for some time, Russia's economy and budget will have to optimize their spending, and concentrate only on profitable budgetary programs, which will not have only major consequences on Russia, but the Europe as well as Russia is one of the main oil suppliers.

This article informs us how there are great concerns as oil prices are dropping because the 'tepid demand has forced oil producers to cut prices to attract buyers'. However some in the article are still hopeful as they believe that oil consumption shall increase as we get closer to the winter seasons. The low demand is getting rather concerning for oil companies and demand must increase if companies want to see oil prices increase again.

This article focuses on the variable that influence the supply and demand of olive oil. the European Union produces more than 80% of all the olive oil in the world. This article tries to prove that the price of crude does not impact the supply of Olive oil. We also learn about the supply elasticity of oil.

This article demonstrates elasticity of demand for oil. It also has a nice explanation of elasticity

Tutar, I very much agreed with you here. Gasoline is a great example of Inelastic demand in a real life situation. The price for Gasoline is very rigid, gosline is a necessity to many peoples lives.In this case an increase in price will mean an increase in revenue. There is a positive relationship between price and total revenue. From the supplier's viewpoint, this is a highly desirable situation because price and total revenue are directly related; an increase in price increases total revenue despite a fall in the quantity demanded. This inelastic demand for the suppliers is a highly desirable situation. An increase in price will increase total revenue despite a fall in the quantity demanded. So theoretically Oil companies could charge astronomical prices and get away with it !!

This article concerns the elasticity of oil supply falling due to the time it takes to acquire it and the difficulty to get it. More oil wells are needed and therefore makes the supply extremely slow because of the time it takes to drill. Because of this, the oil supply takes a long time to react to price change in the economy, making it less and less elastic.

This Article talks about Oil, and how the prices of oil have went drastically down in recent times. Oil has a different market than most products, The supply is up but the demand is flat so the prices are falling. It also mentions how the Law of Supply and Demand will soon be able to be applied to Oil, as well.

This article is taken from money control a CNBC website.The article was written on the 25th of February this year and the article talk about the increase in production of oil and why the prices of oil have not reduced. OPEC being the largest oil producers are not willing to cut down the prices of the oil they sell

Hi, There is a web article about the gushing oil demand. Basically is that the demand of oil is the world have been increasing while the production of it have been decresing, That means that the cost is more than before.

This article shows how oil prices in in the United States have been dropping quite drastically which is a huge plus for consumers. However, for oil producers their total revenue has also dropped which does not benefit them. The article displays price elasticity of supply because as more and more oil is being produced, the price of oil then raises. But in this case it is the opposite.

Malaysian palm oil futures ticked higher today, rising for seven out of 10 sessions and trading just below a 17-month high, with strong global vegetable oil demand and concerns over supplies underpinning the market. Exports of Malaysian palm oil products from February 1-25 rose 1.6% to 1,048,311 tonnes from 1,032,104 tonnes shipped during January 1-25, cargo surveyor Intertek Testing Services said.

This article talks about how a new Indian prime minister, Modi, benefited from successfully predicting the oil market. The oil prices dropped significantly after the year of 2010, and the Brent crude oil became the cheapest of all the oils. This means that the demand for it is also the lowest, however since Modi carefully observed the demand and supply of oil, he concluded that demand and supply haven't changed much, however the price did get lower. Thus, he increased the prices of oil, trying to reach the state of equilibrium.

This article is about the discovery of natural gas and oil in Africa. It focuses on the changing of landscape and unlocking Africa's potential gas and oil opportunities.

The price of condoms in Venezuela have skyrocketed to $755 a pack due to a collapse in oil prices. This is an example of market failure with dire consequences. Venezuela has one of the highest HIV infection and teenage pregnancy rates in South America. The collapse in oil prices has caused shortages in many basic products.

This article talks about how Indonesia's supply of palm oil is decreasing, which inturn is effecting the Palm oil industry this having some very large economic implications. As the palm oil industry contributes a lot to indonesia's economy a decrease in the production will cause a decrease in the Aggregate supply.

This article talks about how the falling oil prices can push the inflation level to its lowest ever and how that might imapact economies generally. It is reported that the low oil prices are reducing the level of inflation.

This article discusses the need for oil and how increase in demand in certain areas of the world cancel out decreases in other parts creating a worldwide balance. It also discusses what would happen were some factors to change e.g. increased interest in renewable fuels

The article suggests how Japan achieved a trade surplus last month as exports of cars, computers and other goods grew, while imports dipped on falling oil prices. Government data released Thursday showed that the trade surplus totaled 111.5 billion yen ($903 million) in October.

This article is about how the scarce resource of water is affecting Iraq's stumbling economy. Although a "seawater injection" project has been designed to help Iraq's economy, the lack of resources is what is holding them back. There is also a lack of materials (industry sources) being used to extract the water from the fields; pipes, pumps and new kits to separate larger quantities of water are also scarce. Overall, this article shows that Iraq must deal with what materials or resources are vital to benefit themselves. Scarcity of water and labor sources are affecting a boost in their oil production. -Victoria Benavides

A news report focusing on the economic, meaning the resource consequences of the conflict between Ukraine and Russia, and also highlighting Europe`s dependance on Russia`s oil and how European nations would suffer if there were to be a conflict between Russia and the rest of Europe.

This article reports the aggregate demand decline in Israel as well as Gaza strip, it relays thoughts of industrial firm owners who hope and expect an increase in the near future of a reduction in production costs due to oil prices declining, a very relevant topic as always is the price of oil.

This article is about the West Bank overall economy has witnessed a decline in aggregate demand for the second consecutive month, mainly due to partial payment of public sector salaries, due to Israel's withholding of clearance revenues, according to the Palestine Monetary Authority.

The linked article talks about the macroeconomic policy devised by the new Saudi king, as a counter-measure against the recent economic crisis.