Unidentified author, 15th January 2003. "Oil price rise despite OPEC increase", Daily News (Tanzania)

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Unidentified author, 15th January 2003. "Oil price rise despite OPEC increase", Daily News (Tanzania)

The article appeared in the "Daily News" on Wednesday 15th January, 2003. It describes how prices of oil have risen despite an agreement by Cartel OPEC to boost output. The main cause of this increase is due to a "cut in production in Venezuela and the possibility of a war with Iraq".

Like any other commodity the prices of oil is controlled by supply and demand. Demand is the amount of good or service that is bought at a particular price over a particular time period. Supply is the quantity of a good or service which a seller is willing to provide at a particular price over a particular time. There is a high demand for oil around the world as the world relies heavily on oil for a lot of everyday purposes. It is essential to the welfare of the industrialized world and it impacts the cost of transport, the cost of goods, services and the availability of many products including food, water and shelter.

The price of oil has increased due to the supply of oil decreasing in the