Vagaries of the Oil Market

There is a legend in the oil market, driven by a sharp rise in oil prices in recent years. This perception is that the oil company whose sole job is to get the raw materials for production of oil products including gasoline for transportation, a source of high prices. It is easy for people to beat big business.

The truth is that those involved in the oil companies know very well that the oil market is very orderly. This means that the old adage, “What’s up must come down” certainly applies to the oil market, locally and around the world. Current high prices better reflect the problems with the refineries and the provision of the Middle East with the aim of the density of oil company profits are concerned. In fact, oil companies and dealing with major changes in supply and demand and how this affects their future plans, the economy or affect more than the average consumer.

The increase in gas prices is not the first time that oil companies have seen great gains and profits in the results. And for those who may be in business for decades, oil profits are well aware that the current high economic benefit the oil companies will change dramatically in the other direction at some point. Just as there is a shortage because of problems with repairs or temporary suspension reduced refinery in the country comes a time when all refineries producing at full capacity, and there will be surplus in the market that will drive prices down.

Similarly, as the lack of oil and dominate the minds of consumers because of tensions in the Middle East, oil supplies could change dramatically. New discoveries in Asia could the Soviet Union, Europe, and South America or far from the coast in the United States sent a sudden abundance of supply in the market, which will send oil prices down sharply and with it the price of natural gas in all parts of the world.

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