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The price of oil can be attributed to supply and demand. Oil is a non-renewable source of energy. It is found naturally and if the earth hits the limit, it will stop producing. The demand for oil continues to rise as people need it to power their homes and vehicles. Because the demand is so high, and the supply is limited, this creates a higher price for oil.
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How would high oil prices cause inflation?
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.
How do I find information on high fuel and oil prices?
There are several reasons for why the fuel and oil prices are so high. One reason is that the commodite traders bid up the price on the gas contracts. Another reason is beacause the oil prices are a bit rude today, mainly due to oil costs account for a large portion of the price on gasoline. So if the oil price rises so do the price at the gas station about six weeks later.
What would cause the cost of gasoline to go up?
The price of oil going up in the middle east. We get oil from the middle east and oil is in gas so if oil is high the gas will be high but most the time we should not have to pay so much but the oil companies are just being greedy. -C.I. (Peace Y'all!!)
What was highest oil price ever?
around 1 year ago the price was $145.29 the record high.
Why was the price of gas in 2008 so high?
Gas Prices in 2008 had hit a very high number because Hurricane Katrina Hit Are Oil stuff down south ( Witch Supplies some oil to the United States)
If the price of oil rises around the world what will happen to oil production in Texas?
They will produce less of it because when the price raises, the buyers want less of it because the price is too high.
Why is petrol now the same price as diesel in the UK?
Gasoline is a necessary commodity, and the people who refine oil into gasoline and sell it set the price however high they want to. Because demand for fuel is so high, they can set a high price for both petrol and diesel because they know that people will pay for the necessary gasoline for their vehicles.
What controls the price of oil?
I believe what controls the price of oil, is the quality, and quantity. And by this I mean, you obviously see that the cheaper the oil, the cheaper the price, and vise versa. But by quantity I mean oil is an nonrenewable resource. As you should know, oil is created by the condensing of fossils over an access amount of time, A.K.A centuries. So once we start losing a lot of oil, the prices go up, just as any price would go up on something if the something were at a minimal amount. I aslo believe that we will not run out of the oil, but the oil companies are making you believe that we so that they can explain their high prices with that accuse, when their really cheating you out.
How does rising oil price affect the price of polyester resin?
as polyester resin is a bi-product of oil so if the prices of oil rise then it is definite that the polyster resin price will also rise.
What is todays Singapore platt price for cst 180 hsfo?
IT MEAN THE PRICE OF HIGH SULPHUR FUEL OIL CST
Why is gas price high when barrel of oil is down?
I have included several links, which show an inexact relationship between gasoline price and oil price. There are other variables like crude oil inventories at play, so an exact relationship does not exist. If the data is smoothed over a 4 week period, a linear relationship presents itself. See related links.
International oil prices are determind by?
Oil prices everywhere are determined by supply and demand through a market exchange like the NYMEX. It is done similar to how stock prices are done. When the supply is high relative to demand, people bid lower for a barrel of oil, when the demand is high relative to supply people bid higher for a barrel of oil. Speculators can also play in this game bidding up the cost of a barrel of oil. Interestingly enough, far too many people blame the oil companies when prices are high. While this can be partially true, since oil companies can withhold supply from the market, it generally does not hold true because there are many many different places where oil can be retreived. The supply of oil to the market can also be determined by the price. Oil companies will only supply so much oil at a given price before they will not supply any more unless the price is bid higher. Where the bid price equals what the oil companies are willing to supply you have an equilibrum price.
