If a country that is a major oil producer decides to ban all oil exports to the United States from some reason, the supply curve would go down most probably.
The United States are the biggest economy in the world, and they are also one of the biggest importers of oil in the world. The supplying of oil comes from most of the major producers of oil in the world. If a major oil producer bans the exporting to the United States than the supply curve will be going down almost certanly.
The variable here is only by how much the supply would go down. That would depend on how much oil the country was exporting to the United States. The only way in which the supply curve would not go down is the country manages to find another country that would import the same amount of oil as the United States did, and that is pretty hard to achieve in practice.
Supply is the total production of concerned goods including imports, which are ready for sale in and economy.
The impact on supply of oil in United States , if a major oil-producing country banned all exports will result in a shift in supply curve towards left.
In economics, supply curve is a graphical representation of data given in supply schedule. It shows the relation between the quantity and prices of products that are available for sale in the market. price and quantity of a product is represented on vertical and horizontal axis respectively.
If the major oil producing economies stopped exporting oil to the united states then, there will be a situation of scarcity in the US economy. because US is one of the biggest importer of oil.
This will result in a decrease in supply and the supply curve will shift towards left and this will create a situation of imbalance in the economy.
Therefore, the impact on supply of oil in United States , if a major oil-producing country banned all exports will result in a shift in supply curve towards left.
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