case Module 2 - Lynnette k. Bryant BUS 305 Competitive...

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Lynnette k. Bryant BUS 305 Competitive Analysis and Business Cycles Case Module 2 Price Dynamics There are a number of factors as to the question Why are the oil prices so high? 3 factors would give us a good reason for the rise of oil prices. Since the shutdown of refineries and hurricanes there has been a large decline in commercial oil reserves. Oil prices have been rising since the beginning of the Iraqi War in 2002. 1. With the demand of oil to be at a record high, oil production in most countries has already or will be gone in the near future. The prices keep soaring even with OPEC’s decision to increase crude oil production by at least 50,000 barrels per day by 1 November.
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2. Large amounts of funding also drive oil prices to soar with many speculations. These speculations have a great impact on oil future prices considering the effect of futures margins deals. In 2006 because of the natural gas and crude oil prices the U.S commodity holds over 120 billion dollars each month. 3.
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This note was uploaded on 01/13/2012 for the course BUS 433 taught by Professor Professorarmstrong during the Winter '11 term at Trident Technical College.

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case Module 2 - Lynnette k. Bryant BUS 305 Competitive...

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