World Events Can Affect Fuel Prices

World events play such an enormous role in determining the price of fuel is the fact that crude oil prices are reliant upon global supply and demand, which can change on a dime. The most powerful aspect of this is an organization known as OPEC, or the Organization of Petroleum Exporting Countries. In an effort to keep fuel prices fairly level, OPEC has set an upper limit on crude oil production since its organization in 1960. With 40 percent of the world's crude oil production-and more than two out of three crude oil reserves-under the control of OPEC, this organization clearly has a huge say on the prices of fuel across the globe.

 

Another fact that I think a lot of people miss is the fack that the price of oil also effects world events. When the price of gas went up our economies started to falter ( other events effected it as well) then the price of fuel started falling slowly and the economy slowly followed. You can bet 100% if fuel jumps up again (or more) the economy is going to be hurting again.

Just think about it, fuel prices go up, now or groceries are more expensive, all goods that have to be transported go up. It cost more to heat our homes, it costs more to get to work, it cost moor to cool our homes, have lights in our homes. We have less money to pay rent or mortgages. we don't spend as much at local retailers because we have less money to buy the now more expensive goods.
We can't take a vacation because it cost to much in gas so now tourist detinations are hurting for money because less people are traveling.
There is a lot of things that are directly and indirectly affected by rising energy cost. the more they go up the more our economy will falter.
Simple equasion: OIL GOES UP = ECONOMY GOES DOWN

 

Much as everyone likes to assess blame...the blame lies primarily on the speculators and very little to do with supply and demand. I think they call it "capitalism".

 

Just about everything can affect gas prices. Fear, speculation, taxes, subsidies, man made disasters, natural disasters and sometimes even supply and demand.

 

Ok...sometimes even supply and demand, but profit taking the rest of the time.

 

If the US would commit to tapping the oil sources on our own soil I promise the speculators would find something else to gamble on.

 

You mean like extracting oil from sand, or some other non traditional way?