As oil supplies become increasingly scarce and demand rises, oil prices are steadily increasing. Disruptions in the supply chain may occur at oil wells, during transportation from wells to refineries, at refineries, or along the pipelines that transport oil to different parts of the country. In 2005, some of the most powerful hurricanes in recent history passed through the Gulf of Mexico and hit the major oil refining regions of the Gulf coast. These events had a profound impact on oil prices across the United States that will be felt for some time to come.
Alongside supply issues, increased demand also plays a role in driving up oil prices. Demand for oil varies, just like demand for any other commodity. Seasonal increases in oil consumption occur each winter. While recent data suggests that consumers are buying fewer sport utility vehicles and trucks that consume large amounts of gas, these vehicles are still extremely popular. The number of vehicles per family, and average distances driven per vehicle in a given year, has also increased steadily over the last decade. While industries in the US are becoming less reliant on oil and more energy-efficient, increased consumer use of oil offsets these advances.
Historically, oil prices were affected largely by major political events and wars. Since 1983, crude oil has been traded as a commodity on the floor of the New York Mercantile Exchange (NYMEX). Often volatile market forces are increasingly driving oil prices, and the earlier checks that could be instituted through governmental price controls or production and refining quantity caps are less powerful. The stabilizing forces of controlled production and supply no longer counter the sudden swings in crude oil futures that violence in Nigeria, or war in Iraq, may induce. As oil supplies continue to dwindle, alternative fuels such as compressed natural gas may help make up some of the shortfall in energy needs.
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Current Oil Prices
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Over the past year, retail prices of gasoline and heating oil have increased by almost 50 cents per gallon. Diesel fuel prices have increased by more than 50 cents per gallon. One major cause of these dramatic increases in oil prices is the rising price...
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Crude Oil Prices
10 August 2010 8:30 PM |
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Historically, crude oil or petroleum prices in the United States have been affected by a variety of global factors. In the beginning of the 20th century, crude oil production began to be controlled by the US government, with restrictions on the amount of production and...
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Heating Oil Prices
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Gas Prices
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Gas prices fluctuate according to the price of crude oil. The price of crude oil, in turn, is determined by the world market and depends on the balance between world demand and supply. Currently, few countries supply the world’s oil, as these are the only...
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Propane Gas Prices
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Natural Gas Prices
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Energy experts across the world share the belief that natural gas is most likely to displace gasoline in the future, since natural gas is a cleaner and a more efficient fuel than gasoline. Moreover, with oil supplies getting smaller with each passing day, natural gas...
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An Introduction To Gas Prices
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Natural Gas Production
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According to basic data provided by the Energy Information Administration, the total world output is 95 trillion cubic feet of natural gas. The major producers are the US and the Gulf countries. The US accounts for one-fifth of the production. Natural gas is produced in...
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History of Gas Prices
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Scooter Prices
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Scooters are specially designed self propelled vehicles, mainly used for short or long distance transportation. Currently, scooters are one of the most popular vehicles among people of all age groups in America. Today, the market is flooded with different models and brands of scooters with...