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# Oil producers get a high price for their oil when market supply is low

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Re: Oil producers get a high price for their oil when market supply is low [#permalink]
Here is how we would have thought of it at GMATPill.

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Re: Oil producers get a high price for their oil when market supply is low [#permalink]
1
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Cont'd:

Quote:
(C) oil prices have not been subject to sharp fluctuations in recent years [Very tempting, but the lack of a reason why stopped me from picking this answer.]

The issue with (C) is that knowing that price has not changed recently...this does not help show why this year (low supply) we would put some into storage/stockpiles? What is the benefit of putting away into storage? They wouldn't necessarily catch a higher price in the future cuz we don't know if supply is low in future and price is high so it can be taken advantage of. That connection is missing.
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Re: Oil producers get a high price for their oil when market supply is low [#permalink]
Please correct the typo in Choice E
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Re: Oil producers get a high price for their oil when market supply is low [#permalink]
i marked D ; i did extra thinking this time . should have made a clear and simple approach, clearly its A .
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Re: Oil producers get a high price for their oil when market supply is low [#permalink]
Hi Experts,

Can someone please explain why A is correct. I am still not clear.

Regards,
Ashwin

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Re: Oil producers get a high price for their oil when market supply is low [#permalink]
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Re: Oil producers get a high price for their oil when market supply is low [#permalink]
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