Oil: The Cause And Effect Of Gas Prices

The Cause and Effect of Oil prices Oil is Important it makes more things possible than most people know. It has far reaching effects on countries. Crude oil is broken down into many everyday products. There are many products that many people don’t even realize are produced from oil being separated. The most important being gasoline. Gas is needed to transport all items that ride on trucks and all people drive. Gas Prices can affect how well off a countries economy is. A good economic situation can determine how help business flourish and give people money to help keep the economy going through consuming goods. Gas prices have risen and fallen through history and has affected everyone form OPEC (Organization of the petroleum Exporting Countries) to the average American consumer. Government policy, scarcity, and abundance can all effect gas prices. The price of Gas has many obvious effects and many effects that may remain unforeseen for quite some time. Gas Prices are important and have cause and effect variables that can be explained and regulated.

It is also nonrenewable. However there is still a large amount of oil left. There is a factor of its cost that is driven up because there is only so much left. However countries that rely on oil will pump it out as fast as possible if the can and need the money. That being said oil is run as a commodity so there is an acceptable global price that all oil is subject to. It gets passes on to the end of the line weither that ends at a company or a person. So however much oil there is on the market that makes the price as demand is ever increasing. That means that even though OPEC controls a lot of oil there are other countries that need the money and will take what they can get for