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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 and sometimes more frequently, gas prices are spiking or dropping, 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 is extracted from oil wells beneath the earth’s surface, is a major factor in gas prices. ... It was organized in response to oil producing countries that did not consult with the Middle Eastern oil states before lowering their crude oil prices. ... s goal was to establish firmly unified prices amongst their members, but the organization was not always successful. ... raised oil prices 70%. ... Prices were accordingly raised another 130% at the Tehran conference of December 1973, and a temporary embargo was placed on the United States and the Netherlands at the same time. Other prices increases followed in 1975, 1977, 1979, and 1980, which ultimately raised the price of a barrel of crude oil from United States $3. ... has attempted to raise prices several times by cutting production. According to economic theory, a decrease in supply will yield higher prices. These are some of the reasons The United States must offer stability and continue to have troops in the area, intervening when the world’s oil and its prices are in jeopardy. Currently crude oil prices are rising due to the bombings in Saudi Arabia. ... These factors have already raised the prices of diesel fuel, jet fuel, and home heating oil. ... As a result of these price increases, airline ticket prices will also increase. These are just a few of the elements that effect prices, but none of them have the power to greatly change the price that exists at the pumps. ... The United States demands more gasoline in spring and summer months than in the fall or winter, due to people driving more. ... These prices match the increases that take place at the pumps. ... However, the fact remains that if Iraq indeed decides to renew oil sales, will prices really drop? Even if Iraq gets back into the business of selling oil, it would be unlikely to cause a drastic shift in the price of a gallon of gasoline.
Approximate Word count = 2020
Approximate Pages = 8.1
(250 words per page double spaced)
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