What role does supply of crude oil play in the price of gasoline?
Help would be really appreciate. If you have time, just don’t tell me the role, but also tell me WHY crude oil plays this role.
Help would be really appreciate. If you have time, just don’t tell me the role, but also tell me WHY crude oil plays this role.
April 1st, 2010 at 7:31 pm
Gasoline is made from oil. Oil plays this role because you need it to make gasoline. if it gets more expensive so does gasoline.
April 1st, 2010 at 7:31 pm
Supply and demand. Crude Oil make gasoline (supply) and gasoline feeds the Industrialized nations (demand)
April 1st, 2010 at 7:31 pm
Its a heavy factor (one of 2)
1) Gasoline is refined directly from crude oil
2) Refining capacity or lack thereof impacts gas prices (like when a storm closed down two refineries)
April 1st, 2010 at 7:31 pm
40%, the rest is greedy capitalist speculators on Wall Street commodities exchange where the gasoline price is set.
April 1st, 2010 at 7:31 pm
The reason crude oil plays a role is because fuel or gasoline is made from crude oil. Without crude oil, there is no gasoline.
The supply plays a role in the prices because of "suppy and demand".
April 1st, 2010 at 7:31 pm
It’s about supply and demand, simply put. More crude oil makes for more gasoline, and the more of that the cheaper it can be sold for.
Actually, it’s not so much about supply and demand, because as of late the US has been having trouble with foreign companies playing with gasoline prices and changing them according to will. If it was an American company, they would have been fined, but since they’re not, they can get away with it.
And don’t let anyone lie to you. Gas prices have nothing to do with Wall Street at all. Wall Street doesn’t make oil. The US’ 2 largest suppliers of oil are Canada and Mexico, not Wall Street.
April 1st, 2010 at 7:31 pm
None at all.