For two reasons
1) Because there is a cartel OPEC that can set the price to whatever level they wish.
2) Because oil is a finite resource and we are using it up. As it becomes scarcer, the price will go up due the the laws of supply and demand.
Yes it does affect the oil price
The opposite of a 0.25 cent oil increase is a 0.25 cent oil decrease.
the price of an oil is Rs 30 per barrel and price elasticity -0.5 an oil embargo reduces the quantity available by 20% use arc elasticity formula to caluculate percentage of increase in the price oil?
oil in general is used i production of goods and services.. oil as in petrol oil can be used in manufacturing products and if oil price is high, cost of production would be on the increase so this will result in the increase in the price of that product.
poor people can't drive cars!
An increase in the price of heating oil causes a decrease in the quantity of heating oil demanded.
By allowing oil companies to drill for oil the President with the consent of congress can increase the supply of oil, thereby decreasing the price of oil and gasoline.
It was actually much more than that. In 1971, the price of a barrel of oil was $3.60. By 1980, the price had skyrocketed to $37.24 per barrel; an increase of 934%
Yes, very. Because of the tedious process and shipment it causes the price to increase.
OPEC acts like a monopoly on crude oil. They can cut production and decrease the supply of oil, thus raising the price, but this does not necessarily increase revenue. As the price increases, the demand decreases. The percentage change in quantity demanded in response to a one percent change in price, while holding all other factors constant, is called price elasticity of demand. If the price elasticity of demand is high, then the demand will decrease significantly as the prices increase, and revenue may not increase.
she fainted and died......i acually dont know,...but...a nice spirit would answer in this fashion
Yes, petrol prices will move slightly to reflect the oil price, although in the UK the the oil cost is a very small part of the price per litre, tax and fuel duty makes up the majority of the cost. Also as petrol if produced through fractal distillation (separation of crude oil) the price of petrol is most likely to increase slightly through the price of oil.