The Unstable Change of Gas Prices Across the World Essay

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The Unstable Change of Gas Prices Across the World

The price of gasoline is a major interest to almost everyone in the country and almost everywhere in the world. It seems that every month or even more frequently, gas prices are either rising or dropping but never staying stable. Gasoline prices are affected by many factors, including the price of crude oil in the world market, supply and demand for gasoline, local market competition, temporary supply interruptions, government regulations, or taxes. Gasoline is produced by a distillation process where crude oil is heated and fumes are captured and converted into many products such as kerosene, jet fuel, and gasoline to name a few. Therefore the price of crude oil, which
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OPEC was founded in Baghdad, Iraq in September of 1960.
The headquarters were initially set in Geneva, but were later moved to Vienna in 1965.
OPEC was organized in response to oil producing countries that did not consult with the Middle Eastern oil states before lowering their crude oil prices. The producers feared that other countries would establish monopolies. The aim of OPEC was to create a universal price between the countries, in order to ensure peace between oil producers throughout the world. OPEC also wanted to provide its members with technical and economic support in times of need, since not all the countries were completely stable.
Even though the goal of OPEC was to establish firmly unified prices among their members, the organization was not always successful. In their quest for control over the world market of oil production, they have run into several obstacles and setbacks.
OPEC has barely survived due to internal conflicts among its members. Since OPEC almost has a complete hold on the worlds oil supply, the United States is extremely concerned with the areas instability. The Middle East and the Persian Gulf area, where most of the members are located, are extremely prone to wars, both civil and cross borders. They are often plagued by religious battles and positions of power are frequently overthrown, making it hard for any stability to come out of the area. Anytime there is
chaos

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