Cars are becoming more fuel-efficient and therefore get more miles to the gallon.
As soon as people get access to fuel-efficient cars, they need less need for gasoline. Drivers would want to use an opportunity to save their money for gasoline and start paying attention to the offered cars. As a result, the demand for gasoline and oil, respectfully, decreases. The demand curve is down the supply curve, which leads to the fall of equilibrium price and quantity.
The winter is exceptionally cold.
Weather conditions affect people and their needs to keep their vehicles safe. Cold weather provokes an increase in heating oil demand. Drivers might have longer trips to avoid road accidents and spend more time warming up cars. When oil demand rises and its curve moves to the right, the supply curve is also shifted. The equilibrium price and quantity rise because it is usually hard for people not to use cars and obtain comfort.
A major discovery of new oil is made off the coast of Norway.
In most cases, people demonstrate their interest in new production, believing in its better quality and affordable price. The citizens of the mentioned geographical location will affect the demand curve, which might spread locally with time. International trade relationships will be positively developed for the country. Oil discovery makes oil demand higher, which results in the supply curve shifting to the right and a decrease in equilibrium price and quantity.
