Question

What were two of the reasons for the spike in oil prices during the 2000s?

Answer 1

overdemand in relation to supply; lack of refined oil; oil speculations; and decreased production by OPEC. 

Answer 2

The correct answer is 4: overdemand in relation to supply. The 2000s saw the greatest continuous expansion of the world economy in decades. Much of this growth was focused on the developing world. The booming economy led to high prices for most commodities, including agricultural products as well as oil and other mineral resources. OPEC did not decrease its production, but it refused to increase it in the face of greater demand in order to benefit from the higher prices.