Saturday, November 19, 2011
Oil and Gas Business
Over the past few weeks, oil prices have dropped slightly. Like prices of other commodities the price of crude oil experiences wide price swings in times of shortage or oversupply. Throughout much of the twentieth century, the price of U.S. petroleum was heavily regulated through production or price controls. It was not unusual to hear on the nightly news how oil was either being either release or not release to control prices.
What is believed, natural gas and crude oil prices should be related because natural gas and crude oil are connected and based usage and production. If you watch oil prices over the last few years, the price reflected on Wall Street normally influences our price at the pump.
People in the oil business would like us to believe the change seen during oil price jumps are related to consumer demand, oil shortage and refinery cost.
Watching how things from the human eye, oil prices go up and gas prices jump 10 or 15 cents pretty fast. When Oil prices decline, we see gas prices drop 1 to 2 cents at a time. The average consumer believes like I do, the Oil business theory does not add up.
Frustrations with Wall Street trickery and Big Oil have fuel frustration of many Americans and you can see that frustration with Occupy Wall Street. The movement gives ordinary Americans a chance to voice their concerns and try to influence change for the near future.
Finally as long as Oil is being traded on the market and the world continues to use high consumptions, we will play this game of catch go for years to come.