Role of the government

The government is said to have played a very big role in the issue of oil prices that hit a sweet spot in world economy and environment. The major role of government in this issue was to strike a deal with OPEC members that led to an equilibrium point of demand and supply that led to control of oil prices. Control of oil prices is the role of government that eliminates cartels and other oil brokers who contribute to increase of oil prices. Conclusion Oil is a very precious commodity that supports the lives of many individuals, industries and the entire economy. Oil prices depend on a number of factors and it is the role of government to step in so as to stabilize oil prices and maintain equilibrium in demand and supply. Oil prices have certain macro and micro economic implications and this means that it is a major element in the production process. Work Cited Frank Andre Gunder, 1980, Crisis in the World Economy, Holmes & Meie