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Guardian: Oil price surges as Opec agrees first cut in output since 2008

Article published: Nov 30, 2016 – out of date: no longer suitable for your IB Economics commentary

IB Economics syllabus: Microeconomics (demand and supply, cartel)

Decreased supply leads to higher price: “The price of oil has surged by 8% after the 14-nation cartel Opec agreed to its first cut in production in eight years.”

Source of image: Heinz-Peter Bader/Reuters

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