
Subscribe to our Facebook, Twitter to stay updated for the new posts. Also we have many more stories to explore below:
Advertisement
More stories:
Click here to read next random post from English Russia
2 Responses to “Why the prices for gasoline grow?”
Leave a Reply
- Abandoned (108)
- Automotive (1,327)
- Belarus (69)
- Business (399)
- Chelyabinsk (19)
- Culture (2,042)
- Drunk (18)
- Economics (446)
- Estonia (1)
- Exclusive (1,250)
- Far East (23)
- Fiction (65)
- Funny (3,638)
- History (2,929)
- Interesting Facts (876)
- Karelia (36)
- Kazakhstan (1)
- Khabarovsk (17)
- Kiev (112)
- Law (146)
- Members Only (9)
- Moscow (24)
- Murmansk (18)
- News (80)
- Nizhny Novgorod (1)
- Odessa (2)
- Other (1,180)
- Perm (11)
- Photos (9,337)
- Reports (12)
- Rostov-on-Don (15)
- Russian army (1,271)
- Russian Art (996)
- Russian Food (59)
- Russian Music (18)
- Russian Nature (1,173)
- Russian People (3,272)
- Samara (1)
- Saratov (2)
- Science (609)
- Society (3,381)
- Sports (230)
- St.Petersburg (29)
- Tajikistan (1)
- Technology (3,112)
- Transport (261)
- Travel (45)
- Tula (1)
- Tver (1)
- Ukraine (226)
- USSR (58)
- Video (1,238)
- Vladivostok (2)
- Volgograd (1)
- Vologda (1)
- Voronezh (1)
- Yakutia (4)
- February 2019
- January 2019
- December 2018
- November 2018
- October 2018
- September 2018
- August 2018
- July 2018
- June 2018
- May 2018
- April 2018
- March 2018
- February 2018
- January 2018
- December 2017
- November 2017
- October 2017
- September 2017
- August 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- December 2016
- November 2016
- October 2016
- September 2016
- August 2016
- July 2016
- June 2016
- May 2016
- April 2016
- March 2016
- February 2016
- January 2016
- December 2015
- November 2015
- October 2015
- September 2015
- August 2015
- July 2015
- June 2015
- May 2015
- April 2015
- March 2015
- February 2015
- January 2015
- December 2014
- November 2014
- October 2014
- September 2014
- August 2014
- July 2014
- June 2014
- May 2014
- April 2014
- March 2014
- February 2014
- January 2014
- December 2013
- November 2013
- October 2013
- September 2013
- August 2013
- July 2013
- June 2013
- May 2013
- April 2013
- March 2013
- February 2013
- January 2013
- December 2012
- November 2012
- October 2012
- September 2012
- August 2012
- July 2012
- June 2012
- May 2012
- April 2012
- March 2012
- February 2012
- January 2012
- December 2011
- November 2011
- October 2011
- September 2011
- August 2011
- July 2011
- June 2011
- May 2011
- April 2011
- March 2011
- February 2011
- January 2011
- December 2010
- November 2010
- October 2010
- September 2010
- August 2010
- July 2010
- June 2010
- May 2010
- April 2010
- March 2010
- February 2010
- January 2010
- December 2009
- November 2009
- October 2009
- September 2009
- August 2009
- July 2009
- June 2009
- May 2009
- April 2009
- March 2009
- February 2009
- January 2009
- December 2008
- November 2008
- October 2008
- September 2008
- August 2008
- July 2008
- June 2008
- May 2008
- April 2008
- March 2008
- February 2008
- January 2008
- December 2007
- November 2007
- October 2007
- September 2007
- August 2007
- July 2007
- June 2007
- May 2007
- April 2007
- March 2007
- February 2007
- January 2007
- December 2006
- November 2006
- October 2006
- September 2006
- August 2006
The oil price rises during the summer because there is a larger demand for it during the summer. The good weather increases productivity and as a result more goods have to be moved. These goods are moved with fossil fuels and because of this there is an increase in the demand for oil but not a real increase in the amount of oil produced. Now the law of supply and demand dictates that the oil available should become more valuable because more people want it. The price then increases to meet the rising demand.
For example, let’s say there are 10 million barrels of oil available and there are 20 million people each wanting a barrel of oil. This means that people want 10 million more barrels of oil than what is available. To counter this demand, the oil companies make it more expensive so that 10 million of the 20 million people decide that they don’t want the barrel of oil anymore because it is too expensive. As a result, the demand equals the supply. They also do this because they can make more money by selling it at the highest possible price.
In the U.S. there were some oil refineries that about a month or so ago had “accidents” and parts of the oil refineries blew up. As a result, the oil companies charged more money for gas because they claimed that the “accidents” hindered the supply and with the decreased supply and unchanged demand, the price of the existing oil went up.
This is an example of bad capitalism. Now they may have to pay money to fix the refineries, but if it costs them 10 million dollars to fix the refinery and the increased prices brought in an additional 50 million dollars, then they just made an extra 40 million dollars by blowing up their own refineries.
On the other side of that I know a guy who started a business with only $5,000 and an idea to make these really neat computer chips. He was an electrical engineer and he and his friends started this company with that $5,000. Eventually his company was worth about $300 million(after several years). This means that anyone can become a wealthy person. They need only a small starting amount of money, good knowledge of how to run a business, and a good idea.
victor, you are correct about the threat of inflation debasing currencies. However there is another facet in regards to the price of oil. Back when oil per barrel was around 147 USD/barrel I was told that it would plunge to 50 USD/barrel within 3 to 6 months time. Well i could really kick myself because sure enough oil went down to under 40 USD in December of 2008. Now, from that point on the price of oil is to be held at or below the 50 Dollar range for 1 to 1.5 years. This will bankrupt OPEC and other major oil producers of the world so that they can be bought up and consolidated by those who are causing all of this. I cannot tell you who is manipulating all of this because they are the men behind the curtain pulling the strings and men behind curtains have no name and no face. My educated guess is that if my source of information is once again accurate the 1 to 1.5 year time frame is indeed a fuse counting down to some cataclysmic global economic powder keg. What happens after that, who knows, but i sincerely think hyperinflation is on its way. Oil, Gold and Silver will become very expensive and it will probably be a good idea to own these things in the near future.