oil and gas prices

oil and gas prices

Supply and demand has a great effect on many things from oil and gas prices to every day drinks and food. So, it is important that we understand exactly what the laws of supply and demand are. The expanded view of supply and demand is that the higher the price the lower the demand, but there are laws that affect how this works. First rule of supply and demand is that the greater the supply the lower the price. The second rule is the greater the distance between supply and demand the greater the forces on prices. The third rule is when supply is the same as demand prices do not change.
    Therefore, in a time of low demand prices will fall.   In 2008 gas prices ranged all the way up into the four dollar range, because the demand for oil was high. But, I did not take till later on in the year the gas prices began to fall due to the fall in demand of oil and gas. This results in a lower price for oil and gas.
    So, if prices change in a time of less demand does the same happen for a time of high demand? There is a change in the price this time. Whenever there is a great demand for something the price of that item rises. This happens until the demand for this item has fallen then prices fall. The point where supply and demand meets is called the equilibrium. This place is the perfect balance between supply and demand.
    Political ventures have a great pull on the price of gas and oil. War is a great blame for the price of gas and oil to rise.   After George Bush proclaimed the War on Terror the price of gas and oil did rise. War time has a great demand on the oil and gas industry. But, it was not war that caused the prices to rise when the war started. Rick Earl (2003) reported “Iraq produce only 1.7 million barrels or three percent of the worlds production” and, goes on to say “United Stated get the majority of its oil from Mexico, Canada, and Saudi Arabia.” So, the “War on Terror” did make the gas and oil prices rise by causing a great demand....