Matthew Rushing
Mrs. Weser
Economics
08-26-13
Oil climbs, gas gains on East Coast refinery problems
By: Anna Sussman
Friday August 23 2013
In this article Anna Sussman tells us how the disruption of Libyan exports and the shut down of two large oil refineries can affect the prices of gasoline significantly. this is a good example of supply and demand at work, as the oil productions get disrupted the supply drops which increases scarcity and demand. I think that as long as the rise in prices is due to a lack of supply it is okay, but I don't think that oil companies should raise the prices when the demand isn't as great. I think this because they have the supply but the demand isn't there and by the rules of supply and demand the prices should be dropping. These rises in gas prices can have serious effects on the whole economy, by raising the price of oil they raise the price of shipping and that in turn can raise the prices of goods that need shipping thus driving prices in every category of the economy up. http://uk.reuters.com/article/2013/08/23/markets-oil-idUKL4N0GO0UI20130823
I agree. Oil is ridiculously high in cost. Companies can charge anything they want for it because it is so needed, but that is a greedy way of business.
ReplyDeleteI agree with everything you said. Just because two, large oil refineries shut down, it doesn't mean they can raise prices. But they do think they can because they control how they distribute the oil, and it will have effects on the economy.
ReplyDeleteI agree with your point that the price of oil affects the entire economy. It is entirely a true statement. I personally wish it wasn't this way because it stinks that our entire economy can be changed by a single factor but I guess there is little we can do about that. The demand for oil keeps rising and rising and as it becomes more scarce it is obvious that the prices will shoot up as a result, which honestly is quite a letdown.
ReplyDeleteI believe you sound very political with the new information we have learned. I also think that the price for oil should be raised even if we do not want it to. This is because oil is becoming very scarce.
ReplyDeleteI agree with how you said the price of oil can affect the entire economy. It's amazing that one thing can affect our entire economy. Oil is becoming a scarce product.
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