Where Will Oil Futures Go
Oil and red diesel price has been going up ever since 2004 when the war in Iraq started. This increase has mostly affected the many people who drive. The increase in gas prices means more spending out of an already tight personal and family budget. In some parts of the country, gas has only risen merely a dollar in over last decade, but in other parts of the country gas has gone to four or five dollars per gallon. Sadly, gas may never decrease to what it used to be in the past.
Why Oil Prices May Never Decrease
Oil is a natural resource, in other terms, it can’t be manmade. It also is not as renewable an energy source which makes it in some ways a scarce commodity. Also the cost of bring the oil from out of the ground to the gas pumps is very high and the oil producers tend to keep inflating the prices to make sure they recoup their capital outlay.
Impact of Past Events
In the past, there have been times when oil prices have risen because of the supply of oil itself. A great example of oil shortage is the 1973 oil crisis which caused inflation as the price of a barrel of rose rapidly. This would also be tied to the 1979 energy crisis in which there was such a shortage of gas that there were rules in which depending on the day of the week you could get gas going by the license plate number whether it ended in an odd number or an even number. Recently in 2003 speculators started the dramatic rise in prices which lasted over the next four years.
Final Conclusion
Though there are politicians who insist on lowering the oil costs, it may never happen again. Some people have even turned to offshore drilling which in 2010 has created one of a number of catastrophes in the Gulf Of Mexico because of an oil spill. Such mistakes as the oil spills of 1989 and 2010 will continue to be one of the main factors as to why oil futures will remain stable or rise. The main key is the uncertainty about the world economies and production.
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