Gas+Prices+Soar+On+Supply+&+Demand,+Not+Manipulation+by+Patrick

= TITLE OF EXTRACT: = As World Oil Supply Tightens, Is It Time To Tap The Strategic Petroleum Reserve?

= SOURCE: = http://www.forbes.com/sites/christopherhelman/2012/02/27/sabers-rattle-as-world-oil-supply-tightens-time-to-tap-the-spr/

= DATE EXTRACT WAS WRITTEN: = March 2, 2012

= DATE CURRENT EVENT WAS WRITTEN: = March 6, 2012

= EXPLANATION OF THE ECONOMIC THEORY RELATED TO THE ARTICLE: = Prices of oils are extremely high throughout the entire world right now and it is increasing to it's highest level since 2008. It is said that the price of a barrel of brent crude hit $128.40 USD on Thursday and on Friday, it dropped to $125.45 USD. Although plenty of skeptics believe that this is happening because of manipulation, the ultimate reason this may happen is because there might be a supply disruption for oil. An expert says that "Everything that is causing this supply-and-demand imbalance...is explanaible as a rational action."

= VOCABULARY TERMS AND DEFINITIONS: =
 * Supply - the amount of a goods or services a producer is willing and able to produce.
 * Demand - the amount of a goods or services a consumer is willing and able to buy.
 * Market - a supply and demand for a particular commodity or service
 * Profit - the difference between the amount earned and the amount spent
 * Law of supply - as the price of a product increases, quantity supplied will also increase
 * Law of demand - as the price of a product increases, demand decreases
 * Economies - careful management of available resources

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= EVALUATION: =