Writing Resources
Oil and gas are commodities that people crave to purchase and they are harvest that companies want to sell The prices for those particular commodities will vary due to supply and demand When buyer demand for a commodity rises the provider will convene that demand at a higher price Owyang Michael Vermann E Katarina 2014 When demand decreases the seller will lower prices to persuade consumer purchase Many fuel suppliers will lower their prices to attract their regular consumers to come and fuel up When supply increases seller will lower their prices due to the plenty of product This increased supply has lead to decreases in the price of gas at the pump When in market supplies are generally decreasing suppliers will raise the price due to the shortage of the resource In the year 2005 Katrina knocked out oil production in the Gulf of Mexico with stopped oil refinery output in Louisiana and Texas Supply and demand is a good relationship between the price and the quantity Equilibrium is the situation at which supply and demand both interconnect Oil markets will make equilibrium because prices that are above or below the equilibrium price run to an excess or shortage Gately D Dargay J 1995 Several new technologies in fuel efficient vehicles are in high demand and it will make increase the gasoline supply Ultimately the demand of fuel efficient vehicles will meet with the demand of lower and more inexpensive fuel costs
