Almost all major oil producers including Saudi Arabia have become dependent on high prices, with break-even levels usually over $90 per barrel to meet their fiscal obligations. Consider the following can be termed as explanations for the present decline in oil prices:
(i) The world markets are flush with supplies for which there are not enough consumers.
(ii) The global economic slowdown is the Principal culprit: with China’s national growth projected at around 7% per year, increase in oil demand is negligible.
(iii) Europe is also not expected to contribute to increased demand due to its sluggish growth.
Which of the statements given above is/are correct?
(A) (i) only
(B) (ii) only
(C) Both (i) and (ii)
(D) All of the above
Answer: D