Oil and Gas Prices - OIL AND GAS PRICES 1 Oil and Gas...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
OIL AND GAS PRICES 1 Oil and Gas Prices Brett Grumm COM/150 - EFFECTIVE ESSAY WRITING (AXIA) May 2, 2010 University of Phoenix Axia College Thomas Martin
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
OIL AND GAS PRICES 2 Oil and Gas Prices We, as a nation, go through as many problems in our everyday life. From social to economical, the problems are countless. One of the problems is the rising fuel price. This has not only become a household issue but has become a national crisis. Before, gassing our car was not even an issue but now we have to make it as a bill. Oil and gas prices undergo major price fluctuations in short periods of time because of supply and demand. What Causes High Oil Prices? Like most of the things you buy, oil prices are affected by supply and demand. More demand, like the summer driving season, drives higher prices. There is usually less demand in the winter, since only the Northeast U.S. uses heating oil. However, oil prices are also affected by oil price futures, which are traded on the commodities exchange. These prices fluctuate daily, depending on what investors think the price of oil will be going forward. “Gas and Oil Prices - How Oil Prices Affect Gas Prices” Amadeo, Kimberly (January 3, 2010) Politics are one of the deciding factors on the pricing of the gasoline. In this modern era where decisions on people’s well being are made by a handful of politician, it is necessary to maintain a healthy relationship with our main trade allies. For example, Canada is the number one exporter of oil to United States, which makes it a priority for our representative to maintain a healthy relationship with them as they have our dream and we want the cache. This does change from time to time as the government changes but overall strategy remains the same. Apart from the Saudi Arabia, US does import oil from other countries like Iraq and Venezuela which states a
Background image of page 2
OIL AND GAS PRICES 3 basic fact that foreign policy is one of the major factors in keeping our store to inquire part in equilibrium. In-Text Citation 1. This is a Fact: Canada remained the largest exporter of total petroleum in January, exporting 2.593 million barrels per day to the United States, which is a decrease from last month (2.649 thousand barrels per day). (US Energy Information Administration, 2010) In the U.S. there is an over-supply of crude oil in the market, at present. Not that it definitely should but, obviously, the price of oil should slide, right? Well, last week the oil prices closed at $81.79 a barrel. There reason? There isn’t one but many. Before that let us look at some data. Reasons Behind Oil Price Rise - Dallas Gas Prices.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 8

Oil and Gas Prices - OIL AND GAS PRICES 1 Oil and Gas...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online