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Weakening of the US economy, dollar depreciation, inflation, world speculative investments, Venezualan bad relations, OPEC greed, and obviously the great instability of Iraq coupled with the explosion of many oil refineries in Iraq during the war.
Fossil fuels are a finite resource. One day they will run out. What we are consuming in Oil & Gas are the prehistoric tropical rainforests & vegetation stored within the earth over millions of years. We are burning these resources at an ever increasing rate & they cannot be replaced. All of a sudden the world is changing and countries which have been seen as Third World, principally China & India (& others) are becoming major players in the world economy. What we in the 'West' are seeing at this moment in time on the News is us staring at the Abyss. We in the west are about to become very much poorer in world terms. Mark my words, we are becoming poorer, those of us that read these words, those of us that live in Europe & the US & possibly Japan & Australasia. Oh dear !
Wiki User
∙ 12y ago
Wiki User
∙ 9y agoOne of the factors that affect the supply of oil is infrastructure. Another factor that may affect supply is insecurity.
Wiki User
∙ 11y agoThe Price of OIl,
Economic development of the country in which it is demanded
Societal viewpoints
Environmental awareness
Supply of oil
Usefulness of oil
Wiki User
∙ 9y agoSupply, demand, and refinery capacity, among many others.
Wiki User
∙ 11y agoLess supply, higher price. If there is less of a product but an inelastic demand (people need oil to drive, so it is fairly inelastic) then the producers will charge a higher price.
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How does scarcity impact economic decisions?
Supply and demand. When the supply is low the price usually goes up.
What is the current platts price for automotive gas oil?
This is the price of crude oil. The amounts will vary depending on the supply and demand that is placed on the oil.
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.
What impact will short supply of material have on budget preparation?
A short supply will usually have the effect of increasing price. This is due to basic laws of supply and demand. If the price of raw materials increases, then the forecasted profit will be in jeopardy.
What is the price of oil?
The price of oil fluctuates daily due to supply and demand. The current price of crude oil on the New York Mercantile Exchange is $99.11 based on the most recent daily quote.
How does scarcity impact economic decisions?
Supply and demand. When the supply is low the price usually goes up.
What is the current platts price for automotive gas oil?
This is the price of crude oil. The amounts will vary depending on the supply and demand that is placed on the oil.
How does products supply impact its price?
When supply increases and demand decreases, the price goes down. When supply goes up and demand stays the same, price also goes down. When demand goes up and supply either stays the same or decreases, then the price goes up
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.
What happens when OPEC the production of oil?
If OPEC reduced output, then world supply will fall. Thus, as supply falls, the price will rise, and the profits of oil-producing countries increase. (In a demand-and-supply graph, the supply curve will shift to the left and you'll see the change in price.)
What impact will short supply of material have on budget preparation?
A short supply will usually have the effect of increasing price. This is due to basic laws of supply and demand. If the price of raw materials increases, then the forecasted profit will be in jeopardy.
What is the price of oil?
The price of oil fluctuates daily due to supply and demand. The current price of crude oil on the New York Mercantile Exchange is $99.11 based on the most recent daily quote.
What monopoly was formed by oil-producing nations of the middle east to control the supply and price of oil?
OPEC
What happenes when OPEC reduces the production of oil?
If OPEC reduced output, then world supply will fall. Thus, as supply falls, the price will rise, and the profits of oil-producing countries increase. (In a demand-and-supply graph, the supply curve will shift to the left and you'll see the change in price.)
Why is the price of oil so high?
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.
A popular new toy is released in limited supply How will the limited supply most likely impact sales of the toy?
It will increase the price of the toy.
How do gas stations determine what price to set for gasonline?
There are many factors that gas stations use to determine the price of gasoline. One of the biggest factors is the supply of crude oil, less supply will equal higher prices. Interruptions in the distribution network has an effect, such as a natural disaster that makes delivery of gasoline more difficult. The value of the U.S. dollar can have an impact on the overall price of gas. The most complex factor in gasoline prices is the oil trading market, depending on how the oil market is doing will factor into how much is paid at the pump.
