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# If there is an oil-supply disruption resulting in higher

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Intern
Joined: 18 Jun 2012
Posts: 43

Kudos [?]: 149 [0], given: 26

GMAT Date: 09-17-2012
If there is an oil-supply disruption resulting in higher [#permalink]

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31 Aug 2012, 00:52
00:00

Difficulty:

5% (low)

Question Stats:

85% (01:09) correct 15% (01:35) wrong based on 146 sessions

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If there is an oil-supply disruption resulting in higher international oil prices, domestic oil prices in open-market countries such as the United States will rise as well, whether such countries import all or none of their oil

Which of the following conclusions is best supported by the statement above?

(A) Domestic producers of oil in open-market countries are excluded from the international oil market when there is a disruption in the international oil supply.

(B) International oil-supply disruptions have little, if any, effect on the price of domestic oil as long as an open-market country has domestic supplies capable of meeting domestic demand.

(C) The oil market in an open-market country is actually part of the international oil market, even if most of that country’s domestic oil is usually sold to consumers within its borders.

(D) Open-market countries that export little or none of their oil can maintain stable domestic oil prices even when international oil prices rise sharply.

(E) If international oil prices rise, domestic distributors of oil in open-market countries will begin to import more oil than they export.

Same passage with other question: LINK
[Reveal] Spoiler: OA

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Intern
Joined: 16 Jul 2012
Posts: 13

Kudos [?]: 5 [0], given: 10

Location: United States
GMAT 1: 710 Q49 V38
GPA: 3.5
Re: If there is an oil-supply disruption resulting in higher [#permalink]

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31 Aug 2012, 02:52
As we are looking for a conclusion.If the domestic oil market in some way is actually a part of the international market then the price of the domestic oil would be directly dependent on that of the international oil market price(independent at how the domestic production of oil is consumed). Therefore any increase in the international oil price would result in the same increase in the domestic oil price.
Let me know if you have any doubt in particular option.

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Manager
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Re: If there is an oil-supply disruption resulting in higher [#permalink]

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31 Aug 2012, 03:00
I'm looking at CR a whole lot different after reading the Powerscore CR Bible.

This question is basically a Must be True Q and only C is true.

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Manager
Joined: 02 May 2012
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WE: Account Management (Other)
Re: If there is an oil-supply disruption resulting in higher [#permalink]

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31 Aug 2012, 04:52
For ‘find a conclusion’ based questions, the correct conclusion can only be supported by the facts stated in the question, not other assumptions (no matter how obvious) can be added.
Therefore-
a) The argument makes no mention of whether or not countries are excluded from the international market. Eliminate.
b) This is exactly the opposite of what the argument is saying. Be careful, because all the elements of the conclusion are mentioned in the argument which makes it attractive, but the argument actually opposes the conclusion. Eliminate
c) Correct, the argument accounts for the effect that international oil fluctations have on domestic prices, and accounts for the fact that domestic oil is sold domestically.
d) Again, this conclusion contradict what the argument is saying. Eliminate
e) This conclusion references behaviours (importing) that is not present in the argument.

What is the source for this question? I think GMAT type questions tend to conform to the ‘absolutely no assumptions allowed’ rule a bit more than this one did.
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Kudos [?]: 71 [0], given: 34

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Joined: 08 May 2012
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Re: If there is an oil-supply disruption resulting in higher [#permalink]

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31 Aug 2012, 15:57
Expert's post
1
This post was
BOOKMARKED
For ‘find a conclusion’ based questions, the correct conclusion can only be supported by the facts stated in the question, not other assumptions (no matter how obvious) can be added.
Therefore-
a) The argument makes no mention of whether or not countries are excluded from the international market. Eliminate.
b) This is exactly the opposite of what the argument is saying. Be careful, because all the elements of the conclusion are mentioned in the argument which makes it attractive, but the argument actually opposes the conclusion. Eliminate
c) Correct, the argument accounts for the effect that international oil fluctations have on domestic prices, and accounts for the fact that domestic oil is sold domestically.
d) Again, this conclusion contradict what the argument is saying. Eliminate
e) This conclusion references behaviours (importing) that is not present in the argument.

What is the source for this question? I think GMAT type questions tend to conform to the ‘absolutely no assumptions allowed’ rule a bit more than this one did.

I second Brad's analysis. The other four choices are fairly easily eliminated, but (C) requires either an assumption (that there's no other reason for why the prices track each other) or outside knowledge (of how market's work – seems like it would be pretty reasonable outside knowledge for the GMAT to expect, but the GMAT really is strict about the "no outside knowledge" rule in CR).
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Re: If there is an oil-supply disruption resulting in higher [#permalink]

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26 May 2016, 12:50
Hello from the GMAT Club VerbalBot!

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Re: If there is an oil-supply disruption resulting in higher [#permalink]

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15 Aug 2017, 23:13
If there is an oil-supply disruption resulting in higher international oil prices, domestic oil prices in
open-market countries such as the United States will rise as well, whether such countries import all or none of
their oil.

Which of the following conclusions is best supported by the statement in the passage?
A. Domestic producers of oil in open-market countries are excluded from the international oil market when
there is a disruption in the international oil supply.
B. International oil-supply disruptions have little, if any, effect on the price of domestic oil as long as an
open-market country has domestic supplies capable of meeting domestic demand.
9
C. The oil market in an open-market country is actually part of the international oil market, even if most of that
country’s domestic oil is usually sold to consumers within its borders.
D. Open-market countries that export little or none of their oil can maintain stable domestic oil prices even
when international oil prices rise sharply.
E. If international oil prices rise, domestic distributors of oil in open-market countries will begin to import more
oil than they export

Can someone please explain why the answer is C and not E because option E also gives a reason why the domestic oil prices go up when international price rise. Thank you

Kudos [?]: 7 [0], given: 8

Re: If there is an oil-supply disruption resulting in higher   [#permalink] 15 Aug 2017, 23:13
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