The Fluctuation Of Oil Prices Essay example

815 Words Oct 5th, 2015 4 Pages
Comparison of Oil Prices
The fluctuation of oil prices are dependent on numerous factors controlled by the way oil companies operate in the United States. Other variables exist external of an oil company’s control, due to rules and regulations that are associated with various environmental agencies. The most common are the import and export capabilities and limitations, the cost of production, and the supply and demand consumers possess dependent on the time of year. All of these elements will seem similar in nature yet yield an inverse reaction that is reliant on the current price of oil.
High oil prices hold different opinions with the public. When oil prices are high and the market is thriving, the gasoline prices will follow. This is where consumers dislike the higher prices, unless family members are employed in the petroleum field. This guarantees a stable jobs for those employees. You hear in the news about how much oil is imported to the United States from other countries which is taking away from the profits of local oil companies. This is where other countries can control the price by shipping large volumes around the world. The more oil we import signifies that there is a great demand in the United States. This is when you see the prices rise. With these higher prices, drilling companies can afford to drill more wells at a faster rate producing large volumes to meet the demand of America’s consumers but also the demand of other countries like Asia and South…

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