With the problems in Egypt, oil prices are not being decreased or even staying the smae, they are steadily going highter and higher. We are at a 2-year high, about $92 a barrel, up 5.5% in two trading sessions, due to concern the turmoil could spread to Middle East nations that are bigger crude producers. Oil is transferred (2% of it) through the Sues Canal, which Egypt controls, also another 2 million barrels a day can go through the Sumed pipline, which also runs through Egypt and connect to the Red Sea tothe Mediterrean Sea. The pipeline and the canal are operating, but traders fear workers may not be able to travel to and from their jobs due to the violence that is occurring in Egypt now. Gas prices were near $1 a gallon only a decade ago. In only 6 years, that price was doubled. Then four years after that it was doubled again. There is a huge demand for gas and oil in the societies all around the world. It's kind of scary to think what would happen if we had no more cars, machines or anything that oil is mandatory for function. Oil pirces are directly related to gasoline prices, for every one dollar increase in the price of a barrel of oil(42 gallons of oil), gasoline prices rise 2.5 cents per gallon at the pump. United States which is home to less than five percent of the world's population, not only the U.S economy but also the world at large as the price of oil and gasoline impacts transportation. Analysts approximated that by 2013 gas would be at least $6-$7 a gallon so maybe we should be at least a little bit grateful it's not that high.
http://www.nytimes.com/2008/05/21/business/smallbusiness/21Thrive.html?ref=accounting
http://money.cnn.com/2011/01/31/news/international/egypt_oil_supply/index.htm
1 comment:
The price of gas is like the number one concern I hear from people when it involves their daily commute. Its amazing how we depend on other countries for resources and other things; and the fact that items from places around the world help us in our daily everyday functions.
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