About Oil Prices

Glady Reign asked:



Oil prices continue to creep upward and analysts in the industry predict they will peak soon, depending upon geopolitical developments.

In Long Island, regular unleaded gasoline averaged $2.812. According to the survey conducted by the American Automobile Association (AAA), the figure was the highest since Sept. 12. Prices normally rise as winter ends and driving increases, but analysts are saying this year’s hike came earlier than the usual.

The problem is far complicated than mere enhancements of Volvo 850 parts and other car parts accessories like. Automotive experts and federal energy officials have faulted downtime for maintenance at some refineries in the United States and Europe. The refineries are the sources of some of the gasoline consumed in the mentioned territories. Additionally, some experts believe that relatively inexpensive gasoline during winter combined with minimal snowfall in many parts of the country to keep demand unusually high for that time of year.

But the U.S. Energy Department has this to say: “Once refineries return from maintenance and imports increase, supplies appear to be sufficient to keep the national average retail price this spring below last spring’s peak level, absent any major unanticipated supply disruptions.”

James Ritterbusch, the president of Ritterbusch & Associates in Galena, Ill., an oil trading advisory firm, said that refineries are ramping up production now and prices probably will level off in about two weeks. “We’ll probably peak earlier this year than we often do, in April,” he added.

What happens then depends on geopolitics, he said, especially a resolution of tensions over Iran’s seizure of 15 British sailors and marines on Friday, allegedly in Iranian waters. “If this situation in Iran heats up further, we’re not going to get a sizable price decline, if any,” Ritterbusch said.

Benchmark crude prices inched up Wednesday as traders awaited the weekly U.S. inventory report. Traders expected a decline in gasoline stocks and an increase in crude oil supplies. Nonetheless, the contrary happened. The situation renewed concern about Iran, the world’s fourth biggest crude producer. Continued uncertainties over Iran’s nuclear program and below-normal temperatures in the northeastern and central United States are keeping prices from plummeting.

Iran announced last Monday that it has begun enriching uranium on an industrial scale. President Mahmoud Ahmadinejad said that the country was now capable of enriching nuclear fuel using 3,000 centrifuges.

Light, sweet crude for May delivery increased seven cents to $61.96 a barrel by noon in Europe in electronic trading on the New York Mercantile Exchange. In addition, May Brent crude rose 32 cents to $67.74 per barrel on London’s ICE Futures exchange.

Prices have been volatile the last couple of weeks, gaining nearly $5 a barrel after Iran detained 15 British sailors and marines, dropping on their release last Thursday, and then sliding almost $3 on Monday on expectations of oversupply at a key North American delivery point.

According to the survey of Dow Jones Newswires, analysts expect gasoline inventories to have declined by an average of 1.3 million barrels in the previous week. Analysts are also calling for a 900,000 barrel cut in distillate stockpiles and a build of 1.6 million barrels in crude oil supplies. Stockpiles include diesel fuel and heating oil.

Some experts and some world powers questioned the affirmation. But it just added to tensions which receded after Iran released the British sailors and marines it had held for 13 days for allegedly entering its waters.

Annie

Anne Catherine asked:


The progress in modern technology as well as the breathtaking development that the human race has achieved in all fronts would have been impossible without the utilization of the natural resource called oil. Oil is a natural resource that has been instrumental in catapulting man into the peak of development he is enjoying today. Taking into account the “never-say-die” attitude of the human breed, we can state that the human beings would have managed to achieve development as well as improvement even without the utilization of oil. However, in the current scheme of things, life is almost impossible and unthinkable without oil.

Modern technology would have been close to non-existing without oil, the invaluable gift of nature. Today, we have become so much dependent on oil in our day-to-day life that we cannot even think of moving a step ahead if all the resources of oil are dried up and the supply of oil is stopped. However, the matter of fact is that this natural resource has become ingrained in our lives. It exists and contributes in so many different ways to fulfill our day-to-day necessities that it has become impossible for us to figure out the extent to which we owe our modern existence to oil.

Unfortunately, this natural resource has become a bone of contention among many countries. The actual cause of American attacks on countries such as Iraq and Afghanistan as well as the principal factor responsible for the complex American policies in the Middle East are no longer under wraps. Oil has led to a very sad state of affairs in the world today. People have started to indulge in large-scale warfare and terrorism just to get hold of oil resources. Similar to the other natural resources, oil is not available everywhere and only a few places have been blessed with oil. These countries that exert supreme influence over the sale and purchase of oil are increasingly tried to be won over by other nations that are bereft of oil resources. For oil being the most costly and highly utilized natural resource, almost all the countries worldwide are pursuing this item and are quite ready to get hold of it at any cost.

But as the demand for oil is far more than supply, the price of oil has increased tremendously in the recent years. Whenever oil prices experience a hike, a chain reaction ensues and the prices of almost all the day-to-day commodities also increase, thereby affecting every strata of the society. In the current scenario, when inflation is the talk of the town and is a growing concern for everybody, oil prices have skyrocketed to an unbelievable 129 USD per barrel. This is the highest level attained by oil prices and the price of oil is not likely to fall below this range in the near future.

Though the prices of all commodities, including oil are experiencing a steep hike, the scene in the technological field in India is quite different. IT related services like custom software development and web application development can be availed of at a significantly cheaper rate, when hired from a reputed software company in India. Software development companies in India are equipped with experienced outsource software developers to successfully and effectively execute the projects assigned by clients across the world.

Harry