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

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
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.
Image of page 1

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

View Full Document Right Arrow Icon
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.
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern