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Price Of Oil Simplified

So who is responsible? Lets examine some of the reasons for which you're getting the raw end of the bargain and having to shell out more at the pumps.

The most frequently heard answer is that there's been a huge growth in the demand for gas thanks to China and India's explosive growth. Countries that produce oil cannot keep up with demand. Even Saudi Arabia recently declared that it was increasing supply to counter demand. The market yawned. Okay, if you want more related info related to price of oil, drop by click here for complete story.

The economies of amazing during the last 6 years which has lead to an increased demand for oil. The truth is, the US accounts for about 4.5% of the world's people, and 25% of the world consumption of oil. Though, that is not the real explanation for oil's price increase.

Continuing On...

Modern economy moves around oil industry as it accounts for a large number of consumption of energy. Around 30 billion barrel of oil is consumed by the world every year according to statistics. Any sort of change in consumption pattern and price of oil has major impact on world's economy. Thus, it becomes essential to keep updated with and analyze oil price data. To go deeper into revealing hints about price of oil, visit the following URL; http://mvenentico.jimdo.com/2014/08/27/paying-more-to-fill-up-at-the-pumps/.

The US dollar has influenced the cost of commodities, for almost a generation. A strong US dollar usually resulted in lower gold and oil prices. The dramatic weakness in the cost of the US dollar has lead to commodities hitting new highs. Commodities are priced in US dollars and move to balance changes in value of the US greenback.

A lower US dollar has resulted in both oil and gold shifting up in price, resulting in you getting burnt at the pumps. Since September 2007, Fed Chairman Ben Bernanke has dropped interest rates 7 times, with the largest cuts happening in 2008. During that same timeframe, the price of oil has moved from $69.26 In September 2007 to $110 in April 2008 when the last cut was made. Today, oil is around $130 a barrel.

This provides an explosive mix for drivers. Hard working Americans are paying the price at the pumps for a devalued dollar thanks to Mr Bernanke. Lower interest rates were intended to help the banks in view of the housing crisis. Instead, it helped to lower the utility of the US dollar and by effect, increasing the price at the pumps.

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