2. Discussion prompts:
Technological breakthroughs can bring about revolutions in the way goods and services are produced, distributed and consumed.
However, the development doesn’t set out to what extent oil users could switch to the new energy or the timescale involved. As the news item indicates that the research has recently been published, teams need to consider how long developments such as this might take before they progress further.
Analysts will also want to think about the costs and benefits of this technology: are new processes always cheaper and more effective than existing ones?
Teams should also think about how the news may impact the market.
Further research: BBC News: Can the US break its oil addiction?

3. Discussion prompts:
‘Levy’ is the imposition of a tax.
If the tax is levied what might the size of the effect be upon petrol demand, and in turn oil prices?
Students could also explore:
why the government needs to raise revenue as a result of buying large commercial banks in the financial crisis
why might petrol be selected as a good product to tax?
Further research: BBC News: Petrol tax rise comes into force

4. Discussion prompts:
If supplies, including production and distribution, are threatened, the price is likely to go up.
The Gulf of Mexico is one of the biggest production regions of crude oil.
Remind teams that they could consider taking a larger risk if they are sure of the future direction of the market. They have the choice to sell their remaining oil now or to wait until the final market price.
If playing the Standard game, teams must ensure they are not ‘short’ at the end of this round. This means they haven’t bought enough oil to meet their futures contracts, and will be penalised. However, if they are ‘long’ (they’ve bought more than they have sold), they can choose to either balance their position now, or wait and sell oil at the final market price. They won’t be penalised for this.
Further research: ABC News: Oil prices rise as Hurricane Gustav nears Gulf

7. Discussion prompts:
The ‘US Fed’ refers to the Federal Reserve Bank or the US central bank.
Teams will need to consider whether the boost to the economy might affect the price of oil.
Strong economic activity in the main oil consuming countries, such as the US and China, can often lead to a greater demand for oil.
Further research: ABC News: US House approves stimulus package

8. Discussion prompts:
Investors can turn to commodities, such as oil and gold, as so-called safe havens from declines in other markets.
Students could also consider what other investment opportunities might be considered to be more resilient against declines in other markets. (For example, gold, silver and other metals and minerals).
Further research: BBC news: Crude oil prices back over $50

9. Discussion prompts:
‘Credit crunch’ refers to the reduction in the general availability of loans (or credit), or a sudden tightening of the conditions required to obtain a loan from the banks.
Inflation is the rate of increase in prices for goods and services.
The price of oil and inflation are often seen as being connected in a cause and effect relationship.
Further research: BBC News: Q&A: High inflation and you

10. Discussion prompt:
Cold weather – or the fear of cold weather – can lead to an increase in demand for oil, particularly in countries that are large consumers of oil, such as the US and China.
Further research: The Independent: Cold weather sends oil prices to nine-year high

11. Discussion prompts:
An ‘Executive Order’ is an order issued by the President of the United States, the head of the executive branch of the Federal government.
The US keeps significant stockpiles of strategic assets such as oil. Some commentators would argue that strategic stockpiles should be used in times of national emergencies such as war not because US citizens were complaining about high fuel bills.
There is likely to be a ‘distribution’ effect if oil prices fall. This could be seen as beneficial for people who pay less for fuel and heating, but by the same token it would reduce the incomes of oil producing countries, many of which are developing nations.
Further research: MSNBC: Obama about-face: Tap U.S. oil reserves

12. Discussion prompts:
Teams should consider the impact that the ‘fear of the unknown’ may have on the price of oil. Although the extent of the damage hasn’t been confirmed, along with the impact on supply, how might the markets respond to the fear that the supply of oil could be damaged?
Remind teams that they could consider taking a larger risk if they are sure of the future direction of the market. They have the choice to sell their remaining oil now or to wait until the final market price.
If playing the Standard game, teams must ensure they are not ‘short’ at the end of this round. This means they haven’t bought enough oil to meet their futures contracts, and will be penalised. However, if they are ‘long’ (they’ve bought more than they have sold), they can choose to either balance their position now, or wait and sell oil at the final market price. They won’t be penalised for this.
Further research: Guardian: Once seen as an alarmist fear, an attack on key Saudi oil terminal could destabilise west

14. Insert headline here
Insert news story here $
Insert questions here